For 2026, bonus depreciation is scheduled at 20% after applying Section 179 limits, though some specific "heavy" vehicles may still qualify for 100% bonus depreciation under certain legislative rules . 2. Choose Your Acquisition Strategy: Buy vs. Lease
Full ownership, builds equity, no mileage limits, and unlocks the largest Section 179 deductions . Cons: Higher upfront costs and monthly payments . Leasing: how to buy a car for a business
In 2026, the Section 179 deduction allows businesses to immediately expense the cost of qualifying vehicles rather than depreciating them over several years. For 2026, bonus depreciation is scheduled at 20%
Lower monthly payments, easier to upgrade to newer tech every 2–3 years, and simpler tax deduction of monthly lease payments as a business expense . Lease Full ownership, builds equity, no mileage limits,
Mileage restrictions and you don't own the asset at the end . 3. Financing the Purchase
Standard passenger cars have lower caps. For 2026, the first-year limit is approximately $12,200 , plus an additional $8,000 if you apply bonus depreciation, for a total of $20,200 .
To qualify for any Section 179 deduction, the vehicle must be used for business purposes more than 50% of the time .