Are you quietly losing money every time you buy equipment?

Not because of your purchase, but because you’re using the wrong deduction method?

Most business owners assume they have to depreciate items slowly, but they don’t. The rules are much more flexible than people think.

With the new 100% bonus depreciation, updated Section 179 limits, and a simple $2,500 capitalization policy, you can deduct most assets in year one instead of waiting years to get the tax benefit.

Your Three Main Depreciation Tools

1. Regular Depreciation

This is the slow method. You spread the cost over the IRS-defined life of the asset.

2. Section 179 Expensing

This allows you to deduct up to two and a half million dollars per year. It cannot create a business loss. You can only deduct up to your business income.

3. 100% Bonus Depreciation

Thanks to the One Big Beautiful Bill, bonus depreciation is back at 100% for assets placed in service after January 19, 2025. This lets you write off the full cost in year one. It can also create a loss, which can offset other income.

Bonus applies automatically unless you opt out.

Choosing the right depreciation method lets you control when you take deductions.

Want to reduce this year’s taxable income as much as possible? Use bonus depreciation.

• Want to avoid creating a loss? Use Section 179 up to your income level.

• Expect a much higher income next year? Delay the deduction so it offsets income when the tax rate is higher.

Smart depreciation planning turns equipment purchases into strategic tax tools.

Who Can Use It?

Any business that buys long-lived assets:

Sole proprietorships

• Single-member LLCs

• Partnerships

• Corporations

• Real estate investors

• Service businesses

• Product businesses

If you buy equipment, technology, furniture, machinery, or buildings, these rules apply to you.

Either you or your CPA can see your benefits in seconds.