If someone told you they wrote off an entire $150,000 Mercedes G-Wagon on their taxes this year, would you believe them? Not over five years. Not over ten. Right now — in 2025.

It’s not a loophole. It’s called 100% bonus depreciation, and thanks to the new 2025 tax bill, it’s back and more powerful than ever.

Let’s break it down and show you how anyone — not just the ultra-wealthy — can use this tax strategy to accelerate business growth and wealth.

What Is Bonus Depreciation?

In simple terms, bonus depreciation allows business owners to deduct the full cost of qualifying purchases immediately, rather than spreading that deduction out over years.

Normally, you'd depreciate equipment, vehicles, or office gear over time. But with 100% bonus depreciation, you deduct it all in Year 1.

Let’s say you purchase $50,000 worth of machinery for your business. Under this rule, you can deduct the full amount this year. That could result in $15,000–$20,000 in tax savings immediately — real cash flow you can reinvest.

For more on how bonus depreciation works, check out Investopedia’s explanation.

What Qualifies?

Here’s what may qualify for bonus depreciation if used for legitimate business purposes:

• Vehicles over 6,000 pounds (like the G-Wagon)

• Work vans, Sprinter vans, or trucks

• Computers, office furniture, tech equipment

• Tools and machinery

• Short-life assets with under 20-year recovery periods

This isn’t just about cars — it’s about any investment in your business that meets IRS standards. You can read more about qualified property from IRS Publication 946.

But Isn’t This Just for the Wealthy?

Absolutely not.

This provision is designed to support business owners of all kinds — from side hustlers to real estate investors. One couple in California with a modest $9,000/month income decided to skip the “starter home” advice and aim for a 4-unit income property. With the right tax planning, they’re leveraging bonus depreciation to invest in real estate and offset their taxable income.

They’re not rich. They’re intentional.

Bonus Depreciation + Real Estate = Powerful Wealth Play

If you're a real estate investor, here's where it gets exciting:

You can use bonus depreciation with cost segregation. A cost seg study breaks down a building into parts — flooring, fixtures, appliances — and reclassifies them as short-life assets. This allows you to front-load your tax deductions in year one.

That’s money back into your pocket — without selling, refinancing, or changing your monthly income.

Learn more about cost segregation from the IRS.

The Clock Is Ticking

This opportunity doesn’t last forever. The window to take advantage of bonus depreciation at 100% is now. It phases down in future years unless Congress renews it.

That $150,000 deduction could become $120,000 or $80,000 soon — so waiting could cost you.

And don’t forget: capital gains taxes are also expected to increase under the next administration, making now the ideal time to consider these tools.

Final Thoughts

Most people spend their lives focused on making money. The smart ones also focus on keeping it.

Bonus depreciation is legal. It's strategic. And it's a playbook that’s available to more people than you think — if you’re willing to learn and act.

Disclaimer: Always consult your CPA or tax professional to see if this strategy fits your unique situation.