In our previous article, we taught you about the Section 179 tax deduction and how it can help your mobile business grow. Now it is time to meet its close friend: the bonus depreciation. When a business invests in equipment, vehicles or property, normally those costs are deducted little by little (depreciated) over several years. Bonus depreciation flips that on its head: it lets business owners deduct a large portion or the full cost of qualifying assets in the first year they begin using them.
Think of it as an “instant write-off”. Instead of waiting years to deduct the cost of a new van, grooming equipment, or other business assets, you can get the tax benefit right away, which can be especially helpful for new or growing businesses that need strong cash flow early on. Due to recent changes under U.S. law, bonus depreciation has become especially attractive for 2025 and beyond.
How Bonus Depreciation Works (2025 Update)
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When it applies: Assets, like a brand new grooming van, qualify if they meet certain IRS rules (for example, they must have a useful life of 20 years or less under the Modified Accelerated Cost Recovery System, or MACRS).
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The 2025 rule: Thanks to recent legislation, assets acquired and placed into service on or after January 20, 2025 are now eligible for 100% bonus depreciation, meaning you may be able to write off the entire cost in the first year.
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If acquired earlier: For assets acquired on or before January 19, 2025 but placed in service this year, a smaller bonus depreciation rate (e.g. 40%) may apply.
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How to claim it: The deduction is reported on IRS Form 4562 in the year you place the property into service.
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No cap on deduction size: Unlike some other deductions (like Section 179 deduction, which has annual dollar limits), bonus depreciation does not have a fixed dollar limit. That means even larger investments, such as a fully equipped van, may be fully deductible upfront.
Why Bonus Depreciation is Great for Vanspeed Pro Grooming Vans
If you own or plan to buy a grooming van through Vanspeed Pro, bonus depreciation can be a game-changer. Here is how and why:
1. Immediate big tax savings. Because you can often deduct the full cost of the van (or a large percentage) in the first year and the tax burden drops significantly, which means more cash flow for the business when you need it most (buying equipment, marketing or supplies).
2. Makes starting or scaling a van-based grooming business more affordable. Mobile grooming involves upfront costs beyond the van itself, like custom interior or exterior fits, upgrades for the layout, products, tools, and more. Bonus depreciation lets you recoup much of that cost sooner, making the financial barrier to entry lower and less risky.
3. Helps manage tax liability even in slower income years. Because bonus depreciation is not limited to annual business profit, you may be able to take the deduction even if your business has not yet turned a large profit. That is especially helpful when you are just getting started.
4. Works alongside Section 179 to maximize your write-offs. You do not have to choose between Section 179 and bonus depreciation. Many businesses use Section 179 first (for equipment or vans under certain limits) and then apply bonus depreciation to the rest, maximizing first-year deductions.
H2: Case Scenario for Vanspeed Pro Grooming Van Owners
Suppose you purchase a fully outfitted Vanspeed Pro grooming van for $130,000 USD in March 2025 and begin using it right away. Since the van qualifies and was placed into service after January 20, 2025, you might be eligible for 100% bonus depreciation. That means on your 2025 tax return you could write off the full $130,000 USD, reducing your taxable income and lowering your tax bill substantially. The result: less stress on cash flow, more ability to invest in your business and faster path to profitability.
H2: A Few Things to Keep in Mind
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Business-use requirement: As with similar depreciation and deduction rules, the van must be used primarily for business (not personal use) and you should keep clear records. This ensures you meet IRS requirements and avoid problems later.
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Form 4562 must be filled: To claim bonus depreciation, the property must be placed in service in the tax year and you must report it properly on your tax return.
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Consider long-term strategy: While accelerating deductions is great, combining bonus depreciation with other deductions or spacing out expenses and income, may yield better overall tax planning. Consulting a qualified tax professional is a great choice.
A Smart Move for Mobile Grooming Entrepreneurs
If you have been thinking about investing in a Vanspeed Pro grooming van, or upgrading or expanding your mobile grooming business, 2025 may be one of the best years to take the leap. Bonus depreciation offers a powerful incentive: reduce your tax liability, improve cash flow, and reinvest in your business faster. For mobile business owners, especially those starting or scaling, that kind of boost can make a real difference. It is one of those behind-the-scenes financial tools that, when used right, can give you an edge, allowing you to focus on growing your grooming brand, delivering great service and building a loyal client base.
Here at Vanspeed Pro we want you to begin building your new professional path, just book your free consultation today and we’ll help you with everything you need!