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Discover seven often-overlooked business deductions for 2025—from bonus depreciation to bank fees, auto‑loan interest and overtime pay—and avoid leaving money on the table.
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It’s 2025—and thanks to sweeping tax changes under the One Big Beautiful Bill Act (OBBBA), businesses are unlocking powerful deductions they may not even know exist. Signed into law on July 4, 2025, this landmark legislation fully restores 100% bonus depreciation, expands Section 179 limits, and introduces intriguing new write‑offs like personal auto‑loan interest—even for those taking the standard deduction
As businesses adapt, it’s easy to overlook deductions that once resided in the dusty corners of tax law. Here, we highlight seven high-impact deductions you might be forgetting—and explain why they matter in 2025.
Under the OBBBA, businesses can now fully expense qualifying tangible assets placed in service after January 19, 2025, including machinery, computers, furniture, and even qualified production property (e.g. domestic manufacturing equipment)
Why it’s often overlooked: Many businesses still default to multi-year MACRS schedules instead of expensing the full cost upfront, missing out on a major liquidity advantage.
✅ Why it matters: Accelerated write-offs free up cash flow–especially vital in growth or cap‑intensive industries.
As of 2025, taxpayers may deduct up to $10,000/year in interest paid on loans for new, U.S.-assembled vehicles used personally—even if taking the standard deduction (“above-the-line”)
Often forgotten because: Personal auto‑interest hasn't been deductible for decades—and businesses may ignore that it now benefits even the standard‑deduction filers.
📅 2025 significance: Under AGI phase‑outs ($100K single / $200K joint), most taxpayers can claim part or all of this deduction, worth a few hundred dollars—or more if loan amounts are high.
From 2025 through 2028, individuals in eligible tipped occupations may deduct qualified tips (up to $25,000) and the half‑time portion of FLSA‑mandated overtime (up to $12,500/year) on Form 1040.
Why it’s overlooked: This deduction is new and limited to certain trades; many small employers/self-employed workers don't yet know to report [Form 4137] tips or W‑2 overtime income.
✅ Why it matters: For restaurant owners, hospitality workers, gig‑economy contractors, and consultants, these deductions can significantly lower taxable income.
IRS information on new deductions:
Those early costs—like research, consulting, travel, and training before launching—can qualify as startup expenses. You can deduct up to $5,000 in year one, with remainder amortized over 15 years.
Why often ignored: Many entrepreneurs launch without capturing pre‑operational costs in real-time, believing deductions only apply post‑launch.
📅 2025 importance: With inflation-driven startup costs rising, early write-offs become more valuable to emerging small businesses.
Standard mileage rates have risen—70¢ per business mile for 2025. If using actual-cost accounting instead, don’t forget to count fuel, maintenance, insurance, interest, and depreciation (or bonus/Sec 179 expensing). And always prorate for personal use.
Why you might miss it: Poor logging, failure to separate personal vs. business miles, or not choosing the more favorable deduction method.
✅ Why it pays: Well‑documented auto deduction can yield substantial savings for frequent travelers, remote workers, or mobile service providers.
These minor—yet ordinary and necessary—expenses are fully deductible:
Often missed because: Small amounts scatter across multiple accounts; people undervalue them.
📅 Why 2025 matters: Every deduction counts when standard deductions are high but business-side itemizing still boosts savings.
The OBBBA permits immediate expensing of U.S.-based R&D costs, including retroactive relief for unamortized expenses from 2022 or 2023—either in full in 2025 or split between 2025–26; small taxpayers may amend returns.
Similarly, capital investments in qualified production property used in manufacturing may now be fully expensed under bonus depreciation rules—even before 2031.
Why overlooked: Companies default to capitalizing R&D or equipment costs—missing retroactive election opportunities.
✅ Why vital: You can dramatically reduce 2025 income with these business investments—translating into better cash flow and reinvestment capacity.
The One Big Beautiful Bill Act (P.L. 119‑21), enacted on July 4, 2025, extends and enhances major business tax benefits: 100% bonus depreciation, Section 179 limits, and new deductions like auto‑loan interest, tips, and overtime for individuals and self-employed alike.
Although 2025 standard deduction levels have been increased (e.g. $15K single; $30K joint), business deductions still matter—and often require proper classification at the individual level or business return to reduce net income and tax liability.
The OBBBA’s reforms in 2025 reframe what’s possible in business tax planning. From full expensing of equipment to fresh deductions on auto interest, tips, and overtime, and even retroactive write‑offs on R&D, companies have more routes to reduce taxable income. Yet without proactive tracking, many of these benefits go unrealized.
To turn complexity into opportunity:
If you’d like guidance tailored to your industry—such as manufacturing, consulting, retail—or help modeling how these deductions affect your cash flow, we'd be happy to help.
The deduction applies to vehicles purchased and financed after December 31, 2024, for tax years 2025 through 2028
Check the Monroney sticker at the dealership for assembly location, or decode the VIN at the National Highway Traffic Safety Administration website.
Yes—expenses for licensure, subscriptions, training, journals, and professional associations are fully deductible if ordinary and necessary to the trade.
Absolutely—if you've recognized receivable income and are unable to collect, a bona fide business bad debt is deductible under ordinary business expense rules.
It depends. Bonus depreciation applies immediately to 100% of qualifying assets, including used property with original use by you; Section 179 allows targeted write‑offs (beneficial if some assets aren’t eligible for bonus or you wish to moderate your deduction for tax planning or state conformity)
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This post is just for informational purposes and is not meant to be legal, business, or tax advice. Regarding the matters discussed in this post, each individual should consult his or her own attorney, business advisor, or tax advisor. Vincere accepts no responsibility for actions taken in reliance on the information contained in this document.
For business tax planning articles, our tax resources provides valuable insights into how you can reduce your tax liability now, and in the future.
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