Preface: “Plans are nothing; planning is everything.” — Dwight D. Eisenhower
Year-End 2025 Industry Mini-Guides: How to Use 100% Bonus Depreciation Before December 31
If you’ve been waiting for the clearest “do I buy this now or not?” answer, here it is: 100% bonus depreciation is back for 2025, and it can dramatically lower your tax bill — but only if you handle the timing and documentation correctly.
The 2025 law change restored full expensing for many business assets and made it retroactive to qualifying property placed in service on or after January 19, 2025.
That retroactive piece is why this is the biggest year-end planning lever for small businesses right now.
Below are quick, practical mini-guides by industry so you can see what matters to your business — plus a simple December checklist at the end.
First: the two rules that matter most
1. “Placed in service” beats “purchased.”
You don’t get the deduction just because you paid for it.
To qualify for 2025, the asset generally must be ready and available for use by December 31, 2025. Delivery, installation, and actual use all matter.
2. Bonus depreciation and Section 179 work together.
Bonus depreciation is automatic for eligible assets unless you opt out.
Section 179 is elective and sometimes better for certain assets or planning goals. Your best result usually comes from using both strategically.
Mini-Guide #1: Contractors & Construction
What usually qualifies:
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- Heavy equipment: skid steers, excavators, lifts, compactors, loaders
- Jobsite tools and machinery
- Trailers and work vehicles (especially those over 6,000 lbs GVWR)
- Surveying, GPS, and jobsite tech
- Computers, tablets, and office/field software systems
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Year-end traps to avoid:
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- Ordering in December isn’t enough. If the machine arrives in January, it’s a 2026 deduction, even if you paid in 2025.
- “Sitting on the lot” isn’t placed in service. If it’s not ready for use (or you don’t have possession), you likely can’t claim it yet.
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Smart December move:
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- Review your 2025 purchases that have already been put into service. With 100% bonus depreciation restored retroactively, you may have deductions you weren’t expecting when you bought earlier this year.
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Mini-Guide #2: Farms & Ag Businesses
What usually qualifies:
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- Tractors and combines (new or used, if first use by you)
- Harvesting, planting, and feeding equipment
- Grain bins and certain farm structures/equipment
- Irrigation equipment
- Farm trucks and trailers
- Dairy and livestock systems that are tangible depreciable property
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Year-end traps to avoid:
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- Installation timing. A grain bin delivered but not installed/usable by 12/31 may not count for 2025.
- Financing confusion. Financing does not prevent eligibility — what matters is placed-in-service timing and business use.
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Smart December move:
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- If you’re considering a major equipment upgrade anyway, placing it in service before year-end can turn a big purchase into a big deduction.
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Mini-Guide #3: Manufacturing & Light Industry
What usually qualifies:
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- Production machinery and shop equipment
- Robotics and automation tools
- Forklifts, pallet systems, warehouse equipment
- Quality control and testing tech
- Computers/software tied directly to production
- Certain facility improvements that are depreciable equipment (not land/building structure)
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Year-end traps to avoid:
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- Long lead times. If you order now but it won’t arrive until Q1, plan for a 2026 deduction instead of assuming 2025.
- Capital improvement vs. equipment. Some building work can qualify (like certain interior improvements), others can’t. Classification matters.
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Smart December move:
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- Don’t guess whether a project is “equipment” or “building.” We can often re-classify parts of a project to maximize what qualifies.
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Mini-Guide #4: Professional Services, Offices & Small Retail
What usually qualifies:
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- Computers, monitors, servers, networking gear
- Point-of-sale systems
- Phone systems and security equipment
- Office furniture and fixtures
- Certain leasehold/tenant improvements that are depreciable property
- Specialized equipment used in service delivery (medical, dental, salons, studios, etc.)
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Year-end traps to avoid:
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- Bundled invoices. If your contractor bills “office remodel” as one number, you may lose deductions that could have qualified as equipment. Breakouts help.
- Low-cost items add up. Don’t ignore “small stuff” purchases (workstations, laptops, POS upgrades). They often qualify and can swing your year-end result.
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Smart December move:
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- If you’re planning tech upgrades for next year, doing them now may pay for part of the purchase in tax savings.
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Should you always take 100% bonus depreciation?
Not necessarily.
Reasons you might scale it back or opt out:
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- You’re already low-income in 2025 and want deductions for a higher-income year.
- Full expensing could reduce other benefits (like parts of the QBI deduction) depending on your situation.
- You’re applying for bonding/financing and want stronger book income (tax strategy and reporting goals don’t always match).
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That’s why a short planning call before year-end is worth it.
Your December 2025 Checklist
Use this as a quick “am I set?” list:
1. List everything you bought in 2025 that’s used for the business.
2. Mark what’s already placed in service (in use or ready to use).For items not yet in service:
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- confirm delivery/installation date
- decide whether to accelerate or accept a 2026 deduction
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3. Pull documentation now: invoices, serial numbers, delivery receipts, install confirmations, and photos if helpful.
4. Ask one key question before buying more:
“Will this be placed in service by December 31, 2025?”
5. Talk to your CPA before the purchase if it’s big — the “best tax move” depends on your whole return.
Want us to run the numbers?
If you send us:
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- a list of 2025 equipment/vehicle/tech purchases, and
- anything you’re thinking about buying before year-end,
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we’ll estimate the tax impact and suggest the best mix of bonus depreciation and Section 179 for your goals.
Conclusion
For most small businesses, this is the single biggest year-end lever for 2025 — but only if the timing and documentation are right.