Tax Advantage

If you own a business and need a capable luxury SUV, the current tax rules create a compelling advantage for certain BMW models. Because the IRS classifies SUVs with a gross vehicle weight rating above 6,000 pounds differently from other luxury vehicles, several BMW options qualify for a significant deduction. As a result, business owners who purchase those models on or after January 20, 2025, may be able to deduct up to the full purchase price in the first year the vehicle is placed into service.

Here's a simple example showing how it works:

• X5/X6/X7/iX/XM Purchase Price: $70,000 with 100% business use
• Eligible Bonus Depreciation Deduction: $70,000 x 100% = $70,000

This creates a major opportunity for business owners looking to upgrade their fleet while securing meaningful tax savings. To take advantage of the deduction, the vehicle must be purchased rather than leased and must be used at least 50% of the time for business purposes. It applies to both new and used models as long as the buyer has not previously used that vehicle and it wasn't acquired from a related party.

The BMW X5, the BMW X6, the BMW X7, the BMW iX, and the BMW XM each have a Gross Vehicle Weight Rating (GVWR) of over 6,000 pounds. If you are looking for a reliable vehicle to use for your business, our team recommends exploring these models because they may be eligible for full depreciation during their first year of ownership.

Compared to other luxury vehicles, these BMW models have the potential to offer significant tax advantages for you and your business by enabling you to deduct more on your taxes. Below, you can learn about these luxury vehicles that may qualify for a tax advantage. Ask our finance team about your eligible vehicle options today. 

The BMW X5 SUV features an elegant exterior that leaves an unforgettable statement wherever you go. The interior offers a high-end experience for everyone on board thanks to available high-quality leathers, heated front armrests, and distinct Glass Controls.

From its sophisticated interior to its roaring high-performance engine options, the BMW X6 makes every drive feel like a dream. When you need something on the road, the available voice-activated Intelligent Personal Assistant instantly responds.

The BMW X7 is a spacious SUV that features luxurious seating for up to seven passengers-or six, with available second-row Captain's Chairs. With available features like ventilated, massaging front seats this SUV exceeds expectations.

The BMW iX brings a bold, modern presence to the road with its clean lines and futuristic styling. Inside, you’re welcomed by a spacious cabin designed to feel calm and refined, highlighted by premium materials and thoughtfully crafted details. Its electric performance delivers instant power and quiet confidence, giving every drive a smooth, upscale feel while staying fully emissions-free.

As one of BMW’s most commanding SUVs, the BMW XM stands out with athletic proportions and a confident, unmistakable design. The interior surrounds you with luxurious finishes, sculpted seating, and bold M-inspired accents that elevate the experience for both driver and passengers. Its performance-first engineering pairs with high-end comfort, creating an SUV that feels powerful, exclusive, and exceptionally refined.