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How to Maximize Tax Savings with Heavy Vehicles and a Home Office in 2025

  • Writer: Steve Julal
    Steve Julal
  • May 6
  • 2 min read

Looking to maximize your tax savings in 2025? If you're self-employed or own a small business, you could unlock substantial tax savings by combining two powerful deductions: one for “heavy” business vehicles and another for a qualified home office.

 

Here's what you need to know to make the most of both.

 

Step 1: Buy a Qualifying Heavy Vehicle

To take advantage of generous first-year depreciation deductions, the vehicle you purchase must meet these criteria:

  • Gross Vehicle Weight Rating (GVWR) over 6,000 pounds

  • Used more than 50% for business

  • Purchased (not leased) and placed in service in 2025


Many full-size SUVs, pickups, and vans meet the weight requirement. Popular examples include:

  • Cadillac Escalade

  • Jeep Grand Cherokee

  • Chevy Tahoe

  • Ford Explorer

  • Lincoln Navigator

  • Most full-size pickup trucks


Step 2: Use Depreciation Rules to Your Advantage

Once you have a qualifying vehicle, you may be eligible for multiple tax breaks under IRS depreciation rules:

 

  • Deduct up to $1.25 million (2024 limit) of qualifying equipment—including vehicles—used for business.

  • You can deduct most or all of the business-use portion of the vehicle’s cost in the first year.

 

** SUV Limitation: For SUVs with a GVWR between 6,001 and 14,000 lbs, the maximum Section 179 deduction is $31,300 (2025 limit).


  • In 2025, 40% bonus depreciation is available for qualified property.

  • This can be used in addition to or in place of the Section 179 deduction.

  • No dollar limit, which helps if you exceed the Section 179 cap.

 

Step 3: Set Up a Home Office

Establishing a qualified home office can significantly boost your business-use percentage for the vehicle—making it easier to meet the 50% business use requirement.

 

If your home office qualifies as your principal place of business, the following mileage counts as business use:

 

  • From home to client sites or temporary work locations

  • Between your home and another regular place of business

  • Between multiple business locations

 

To qualify:

  • Use the space regularly and exclusively for business

  • Use it for administrative or management tasks (or your main work activities)

  • Avoid doing those tasks at any other fixed location

 

If you're an employee of your own corporation, current federal tax rules do not allow a home office deduction.

 

Bottom Line: Double the Deductions, Double the Benefit

 

By combining a heavy vehicle used more than 50% for business and a qualified home office as your principal place of business, you could significantly reduce your federal income tax, self-employment tax, and potentially even your state tax liability.

 

Get Help!

This tax-saving strategy be powerful—but only if done correctly. Contact a tax professional to discuss your specific situation and make sure you’re meeting all the IRS requirements.

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