The Savvy CRNA’s Guide to Car Ownership & Tax Deductions (2025)

Short version: keep the car in your personal name, have your S‑Corp reimburse you under an accountable plan, and keep a mileage log that would make the IRS smile. We aim for a max of 80% business use as a practical guardrail—documented by mileage—because proving 100% is a tall order in real life.

2025 quick numbers: Standard mileage $0.70/mi (depreciation component $0.33/mi); passenger auto first‑year cap $20,200 with bonus ($12,200 without); Section 179 SUV cap $31,300; 100% bonus depreciation for qualified property acquired & placed in service after Jan 19, 2025 (passenger auto caps still apply).

Why we prefer personal ownership (+ S‑Corp reimbursement)
CRNA Vehicle Deduction Calculator (2025)
Mileage vs. Actual (which route?)
Heavy SUVs (>6,000 lbs GVWR)
Records the IRS actually likes
FAQs (pop‑down)
Related reading for CRNAs

Our default recommendation: keep the car personal, reimburse through your S‑Corp

Why: It’s hard to substantiate 100% business use in practice. Personal ownership plus an accountable plan is clean: your S‑Corp deducts the reimbursement; you keep it tax‑free with proper substantiation. You can use the standard mileage rate (simple) or actual expenses (more work).

Goal: we usually aim for ~80% business use. Not a legal threshold—that’s our practical comfort zone so you’re well above the 50% “listed property” hurdle and protected by good logs. The log is what proves it.

Want to see the numbers? Use the calculator below. Then book a quick gut‑check with us and we’ll fit it into your overall plan: Free CRNA tax checkup

CRNA Vehicle Deduction Calculator (2025)

Estimator for year‑one deductions. Assumes 2025 rules. We keep it conservative and transparent. This does not replace tax advice. Vehicle purchase price (USD)Vehicle type (GVWR) Passenger auto (≤ 6,000 lb GVWR) Heavy SUV/Truck (6,001–14,000 lb GVWR)

Tip: check the door jamb sticker or manufacturer specs for GVWR.Placed in service date

100% bonus generally available for qualified property acquired & placed in service after 2025‑01‑19.Ownership Personal (recommended) — S‑Corp reimburses S‑Corp/Business-owned Business miles (year)Total miles (year)Calculated business‑use % —

We aim for ~80% in practice. ≥50% is the key threshold for §179/bonus eligibility on “listed property.”

Operating costs (annual, total — we’ll apply business %)

Fuel, insurance, maintenance, registration, etc. (USD)Annual loan interest actually paid (USD)Parking & tolls (USD)

Parking/tolls add to mileage method too.

Advanced (optional)

Apply §179 (heavy SUVs only) Yes (assume income supports) No

§179 SUV cap is $31,300 in 2025. We assume income limits are met when “Yes.”Bonus depreciation (if eligible) Auto (based on date & eligibility) Elect OUT of bonus Force bonus (if eligible)

Post‑1/19/2025 qualified property gets 100% bonus. Earlier in 2025 assumes 40% legacy rate.Calculate

This is a first‑year estimator. Passenger‑auto caps can limit depreciation even when bonus applies.

Important: This is an estimate. Real returns consider tax home, commuting vs business miles, lease inclusion tables, §179 income limits, elections, mid‑quarter convention, and more.

Mileage vs. Actual (which route?)

Standard mileage (2025): $0.70 per business mile (with $0.33 of built‑in depreciation), plus parking/tolls. Simple and often excellent for high‑mileage, modest‑cost rides.

Actual expenses: Business‑use % of fuel, insurance, maintenance, loan interest (if self‑employed), plus depreciation. For passenger autos (≤6,000 lb GVWR), first‑year depreciation is capped at $20,200 (with bonus) or $12,200 (without). Heavy SUVs avoid those caps but face a §179 SUV cap ($31,300 in 2025) and listed‑property rules (>50% business use).

Planner’s rule of thumb: If your all‑in, per‑mile cost beats $0.70, run actual. Otherwise, mileage wins—and is easier to defend.

Heavy SUVs (> 6,000 lb GVWR): the big‑deduction lane

§179 SUV cap: $31,300 (2025), business‑use % applies; income limits and aggregation rules apply.
Bonus depreciation: 100% for qualified property acquired & placed in service after 1/19/2025. (Passenger cars still hit the luxury caps.)
50%+ business use is required for §179/bonus on listed property. We aim higher (~80%) and prove it with a mileage log.

Records the IRS actually likes

A contemporaneous mileage log with date, origin/destination, business purpose, miles.
Receipts for actual expenses if you use the actual method (or if your accountable plan requires them).
Proof of GVWR (door jamb sticker or manufacturer site), purchase docs, placed‑in‑service date.

Commuting ≠ business miles. Home → regular job site is personal, even for on‑call shifts. Temporary worksites and travel away from tax home are different.

FAQs

Should I keep the car in my name or the business’s?

Our default: keep it personal. Your S‑Corp reimburses you (mileage or actual) under an accountable plan—tax‑free to you, deductible to the business, and simpler to substantiate. It’s hard to prove 100% business use; we aim ~80% with good logs. Can I switch from mileage to actual later?

Yes, if you chose mileage in Year 1 for a car you own. If you ever used §179/bonus or accelerated MACRS (other than straight‑line), you generally can’t switch back to mileage. Leases must stick with the original method for the entire term. What are the 2025 “luxury auto” caps?

For passenger autos placed in service in 2025: Year‑1 $20,200 (with bonus) or $12,200 (without); Year‑2 $19,600; Year‑3 $11,800; each year after $7,060. Caps reduce proportionally if business use <100%. Do I really get 100% bonus depreciation again?

Yes—generally for qualified property acquired & placed in service after Jan 19, 2025. Passenger autos are still capped by the luxury‑auto limits. There’s transition relief/elections for early‑2025 property—ask us before you buy. New 2025: personal car‑loan interest deduction?

For 2025–2028, individuals may deduct up to $10,000 of interest on qualifying personal‑use new‑vehicle loans (U.S. final assembly and income limits apply). Separate from business deductions.