100% Bonus Depreciation Is Back: Here’s What Business Owners Should Do Before Year-End

September 05, 2025•2 min read

If you’ve been considering new equipment—whether that’s laptops for your team, a delivery van, or upgraded machinery—2025 is your window. The latest tax bill restores 100% bonus depreciation, allowing you to deduct the full cost of qualifying purchases in the year you place them in service.

This isn’t just an accounting perk—it can make a significant difference in your bottom line. Let’s walk through what it means, how it compares to Section 179, and how you can put it to work before year-end.

What Is Bonus Depreciation?

Instead of spreading deductions over years, bonus depreciation lets you deduct everything upfront:

Immediate Deduction: 100% write-off in the year the asset is “placed in service.”
Qualifying Assets: Equipment, computers, vehicles under 6,000 lbs, furniture—anything with a useful life under 20 years.
New or Used: Both qualify if it’s new to your business.
Effective Date: Applies to assets placed in service after January 19, 2025.

How It Differs from Section 179

You might be wondering how this differs from other write-offs.

Section 179: Dollar cap of $2.5M per year; requires taxable income.
Bonus Depreciation: No dollar cap; can create a business loss (potentially carried forward).
Best Strategy: Many business owners combine both. For background, check out our guide on capital leases and how they benefit small business owners.

Who Benefits Most

100% bonus depreciation is especially powerful for:

Contractors and Trades: Tools, trucks, heavy equipment.
Clinics or Creative Studios: Diagnostic equipment, cameras, editing stations.
Service Businesses: Office furniture, delivery vehicles, technology upgrades.

If you’re unsure whether your purchase qualifies as a depreciable asset, revisit our explainer on the difference between a capital asset and an expense.

Action Steps Before Year-End

Review Your Wish List: What are you planning to buy in 2025 anyway?
Confirm Delivery & Setup: Must be in service by year-end.
Run Projections: Compare Section 179 vs. bonus depreciation with your CPA.
Look Beyond Depreciation: Don’t forget about other deductions—see our post on 10 small business tax deductions owners often miss.
Check Cash Flow: Deductions reduce taxes but don’t cover purchase costs.

Final Thoughts

Restoring 100% bonus depreciation is a win for business owners who act strategically.

Book a 30-minute year-end planning call with Misty Newsome CPA, and we’ll help you decide whether to invest now or later.

Misty Newsome

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Misty Newsome is a seasoned CPA and the founder of Misty Newsome CPA LLC, a woman-owned virtual accounting firm serving growth-minded digital entrepreneurs nationwide. Over more than two decades in public and private accounting, she saw firsthand how many business owners were stuck in reactive mode—focused only on tax deadlines instead of strategic growth. Determined to change that, she developed her Financial 360 Deep Dive, a comprehensive approach that uncovers hidden opportunities, streamlines finances, and builds proactive tax strategies that actually grow profits.

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