TAKE NOTE:
The newly enacted tax law changes permanently reinstate the 100% bonus depreciation deduction for property acquired and placed in service after Jan. 19, 2025.
BMW 2025 Tax Advantages
2025 X5/X6/X7/iX/XM TAX BENEFIT
As a result, business owners that purchase an X5, X6, X7, iX or XM on or after January 20, 2025 for use in their business may now deduct up to 100% of the vehicle purchase in the year the vehicle is placed in service, as the IRS categorizes SUVs with a gross vehicle weight rating (GVWR) in excess of 6,000 pounds differently than other luxury automobiles.
Example:
• X5/X6/X7/iX/XM Purchase Price: $70,000 with 100% Business Use
• A 100% bonus depreciation deduction ($70,000 x 100%) = $70,000.
This presents a substantial tax savings opportunity for business owners. To qualify, the X5/X6/X7/iX/XM must be purchased (not leased) and must be used at least 50% for business purposes. This deduction applies to both new and used vehicles acquired by purchase, so long as the acquiring taxpayer had not previously used the acquired vehicle and did not acquire the vehicle from a related party.
This is an opportunity to influence business owners to capitalize on this larger tax benefit.
Customers with questions regarding this topic should consult with their individual tax adviser to determine their eligibility for this potential deduction.
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