Section 179 - which year?

[moshiko51]

I was a W2 employee in 2025 and also bought a business. Basic details are: I will have about $250k in W2 income in 2025 and self employment business loss of about $25k including the acquisition.  I need a vehicle for the new business and expect income to be lower in 2026.

From what I understand, if I buy the vehicle in 2025 I can use bonus depreciation to offset W2 income, and if I buy the vehicle in 2026 I can also use Section 179 - but my overall income and tax bracket will be lower.

Which year should I buy the vehicle?

[AmeliesUncle]

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@moshiko51 wrote:

loss of about $25k including the acquisition. 

Which year should I buy the vehicle?

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Be aware that the full acquisition cost usually can NOT be fully deducted in the first year.  In most cases, it is spread out over many years.

Buy it when you need it.  From a tax-saving perspective, there are WAY too many variables to give you a good answer.  If you want good tax planning, you should go to a good tax professional that can look at your ENTIRE situation.