Review Existing Depreciation

Check your prior year returns or asset schedules. You may have unused Section 179 carryovers or bonus depreciation basis on vehicles still in service. Claim those balances in 2025 to reduce income.

Even without new purchases, business owners can deduct fuel, maintenance, insurance, and depreciation on existing vehicles based on documented business use. Accurate logs and carryover reviews unlock hidden tax savings for 2025.

Reclassify Usage Accurately

If a vehicle’s business use has increased over 50 percent this year, you can switch from standard mileage to actual expense method and recover bigger deductions for fuel, repairs, and depreciation. Keep detailed logs.

Optimize Mileage and Home Office Links

When you have a qualifying home office, the drive from home to your first business stop counts as deductible mileage. Without one, commuting is personal. Review your setup to avoid lost miles.

Recover Operating Expenses

Actual expenses include insurance, maintenance, parking, and interest on a business auto loan. Use a pro-rata percentage matching your business use. Documentation is key.

Verify Depreciation Method Consistency

Confirm you are using the same method as prior years (MACRS or straight-line). Changing methods without approval can trigger Form 3115 adjustments. Your CPA can review this quickly.

Special Rules for Leases

If you lease your vehicle, use the IRS inclusion table to offset your deduction. Include parking and business insurance costs. If you sublease or receive allowances, track both income and offsets.

2025 Recordkeeping Checklist

☑ Updated mileage log through December 31
☑ Receipts for fuel, repairs, insurance, and interest
☑ Odometer photo for year-end records
☑ Worksheet for Section 179 carryovers or bonus balances
☑ Home-office confirmation for mileage start points

Book a 2025 vehicle deduction review to analyze your current fleet and maximize write-offs before filing season.