The two main tools for deducting equipment and vehicles are Section 179 expensing and 100 percent bonus depreciation. Both let you write off qualifying purchases in the year you buy them instead of spreading the deduction over many years through regular depreciation.

Section 179 lets you elect to expense the full cost of qualifying equipment and certain vehicles in the year you put them in service. The annual limit adjusts for inflation each year, and most landscaping and contractor equipment qualifies. Mowers, trailers, tools, and work trucks can all be expensed under Section 179 up to the limit. You choose how much of the purchase to expense, which gives you some control over how much deduction you take in a given year.

Bonus depreciation works similarly but is automatic for qualifying property. For 2026, 100 percent bonus depreciation is back and permanent, meaning you can deduct the entire cost of qualifying equipment and vehicles in year one. You can use bonus depreciation alongside Section 179 or instead of it, depending on what works best for your situation and income level.

For vehicles, there’s an additional choice to make: actual expenses versus the standard mileage rate.

The actual expense method lets you deduct depreciation using Section 179 or bonus depreciation, plus operating costs like fuel, insurance, repairs, and maintenance. You multiply the total by your business use percentage. If your truck is used 80 percent for business, you deduct 80 percent of the costs. This method often makes sense for newer, more expensive trucks with heavy business use.

The standard mileage rate for 2026 is 72.5 cents per mile. You track your business miles and multiply by the rate. This is simpler and sometimes comes out higher than actual expenses, especially for older vehicles with lower operating costs. The catch is that you generally commit to one method per vehicle. If you take standard mileage in the first year, you usually stick with it. If you claim depreciation through actual expenses in the first year, you cannot switch to standard mileage later for that vehicle.

All of this depends on clean records. For equipment, you need the purchase date, cost, and documentation that it’s used for business. For vehicles, you need either a mileage log showing business trips or receipts for actual expenses, plus records showing your business use percentage. Without documentation, these deductions don’t hold up if questioned by the IRS.

Good bookkeeping and tax services capture all of this throughout the year. Your equipment purchases get recorded with the right dates and amounts. Your mileage gets tracked consistently. When tax time comes, the information is already organized and ready.

The best approach for your specific situation depends on what you’re buying, how you use it, your income, and your overall tax picture. If you’re making equipment or vehicle purchases this year and want to know whether Section 179, bonus depreciation, or the standard mileage rate makes the most sense, reach out for a consultation.