🚙 Thinking of buying a new SUV?
Summary
Did you know buying an SUV for your business can save you money? Section 179 of the US tax code allows businesses to deduct eligible business expenses from their federal tax they owe. In 2025, if you want to purchase an SUV for your company, you can deduct up to $31,300 from the sale of the car from your federal taxes. There are a couple limitations regarding the type of SUV however. For more information about the specifics, the IRS published ‘Publication 946 (2024), How To Depreciate Property’ last year. The publication walks through the specifics regarding SUV purchases and their depreciation, but we’ll just summarize that below. And yes, it includes updates for 2025.
SUV limitations
Must have a Gross Vehicle Weight Rating (GVWR) of more than 6,000 pounds, but must be less than 14,000 pounds
Vehicle must be used for business within first year of purchase
Vehicle must be used for business more than 50% of the time to qualify as a business vehicle. Note that vehicles solely used for business receive the maximum deduction. The deduction decreases proportionately as personal use increases.
Vehicle cannot have more than 9+ seats behind the driver’s seats. Sorry vans!
Vehicle cannot have no seats behind the driver’s seat. Sorry vans… again!
Vehicle cannot have any piece of the body section protruding more than 30 inches ahead of the leading edge of a windshield. Think delivery vans.
Writing off depreciation on a new business SUV
But wait, there’s more money saving potential! Business vehicles that qualify as business property may be eligible for special depreciation tax deductions (Section 168 in the US Tax Code). What does this mean? This means that when you purchase qualified business property, you are able to write off a bonus amount of depreciation off of the property in its first year. In 2025 the bonus depreciation amount is 40% for SUV’s. This means on top of deducting a potential of $31,300 from a business SUV, you can then deduct an extra additional 40% from depreciation off the remaining value of the vehicle!
Example:
Suppose you buy a used full-size SUV for $75,000 in 2025 to use exclusively for your business. Because it’s a heavy SUV, meets the criteria above and 100% of its use is for company business, you can take the limited Section 179 deduction of $31,300 on your 2025 tax return. Additionally, you can claim a first-year bonus depreciation deduction on the remaining cost of $43,700 ($75,000 minus $31,300). For 2025, that’s 40% of the figure, or $17,480 (40% of $43,700). Your total write-off for the SUV is $48,780 ($31,300 + $17,480).
So if your company makes $100,000 in revenue before a car purchase this year, rather than pay tax on the $100K, you would pay tax on $51,220 worth of revenue ($100K - $48,780 from the SUV deduction).
Popular SUV’s that may qualify for section 179 deductions
Make
Model
Approx GVWR (LBS)
Audi
Q7
6,900
BMW
X7 M50i
7,143
Bentley
Bentayga
7,275
Cadillac
Escalade
7,100
Chevy
Silverado 2500HD
10,000
Ford
Expedition
7,450
GMC
Yukon
7,300
Land Rover
Range Rover
7,165
Mercedes Benz
GLS 580 4MATIC
6,768
Porsche
Panamera Turbo S Hybrid
6,244
DISCLAIMER: Information in this list is sourced from official car manufacturer websites, government databases, and automotive review websites and may not be accurate. Vehicle weights may vary by model year and configuration, and multiple weight classifications may apply. The listed weights are for standard configurations and should be used as estimates only, as actual GVW can differ due to engine size, trim level, towing package, and other factors. We are not liable for errors or inaccuracies in the information presented, and you assume any risk in using it. To verify a vehicle's GVWR of over 6,000-pounds, check the driver's door. For precise information on a specific vehicle's GVW, consult a qualified professional.
🧾 The country’s most bizarre housing market
There is a dramatic shift currently taking place in the Denver housing market, highlighting how a once-booming real estate environment is now showing early signs of a sharp decline. Economists are keeping an eye on the Denver housing market as 3 key factors seem to be signaling distress: housing inventory, housing prices, and Lennar’s financial strains.
Right now in the Denver metro area, active listings for sale are currently well above historical norms, leading to potential price declines. The following chart from the Federal Reserve Economic Data shows the stark increase in active home listings in Denver.
Fred data showcasing the dramatic increase in housing inventory in the Denver metro area as of August 2025
This is a signal that there are more sellers than active buyers in the once booming market. When there are more sellers than buyers in a market, prices tend to come down.
Denver saw massive growth after 2020 with endless construction companies and real estate firms rushing into the market to take advantage of the post-covid influx of outdoor seekers. After covid, the demand to be close to the great outdoors and nature sky rocketed, driving many transplants to move into the Denver metro area. One of the largest construction companies in the US and with ties to Denver is Lennar homebuilding. Their Q2 report was sluggish signaling a decrease in home sales compared to 2024. They even stated that the average home price in Q2 2025 compared to Q2 2024 had dropped by over $30,000. Lennar’s stock is currently down 22% over the past year at this time of writing and continues to point at weakness in the housing market. If we see more metro areas follow the same pattern as Denver, economists may point to bearish forecasts for the US housing market.
Did You Know?
🏦 The oldest bank still in operation is over 550 years old.
It’s Banca Monte dei Paschi di Siena in Italy, founded in 1472—before Columbus even sailed to America! It has survived wars, plagues, political upheavals, and countless financial crises… proving that some banks really do play the long game.
Till next time,
Tax Hacks
The content provided in this newsletter is for informational purposes only and is not intended to be, and should not be construed as, professional tax, legal, or financial advice. While we strive to ensure accuracy, tax laws are complex and subject to change. Always consult with a qualified tax professional or financial advisor regarding your specific situation before making any decisions based on the information provided herein.