#bonus-depreciation
First-year bonus depreciation rules, qualifying property, and tax savings under the One Big Beautiful Bill Act
All four depreciation methods expense the same total — they differ only in timing. Compare formulas, salvage-value handling, and when each fits.
Own equipment you will keep past five years and write it off with Section 179; lease fast-aging gear at fair market value and deduct each payment instead.
Form 4562 reports Section 179, bonus and MACRS depreciation across six parts — expense first, bonus second, MACRS on the rest.
Leasing vs. buying comes down to after-tax present value — Section 179 favors buying, obsolescence risk favors leasing. Run the NAL to decide.
CapEx buys assets you depreciate over years; OpEx covers costs you deduct now — and Section 179 plus the $2,500 safe harbor blur the tax line.
Vehicles and cameras lose accelerated depreciation unless business use tops 50% — and only a contemporaneous mileage log proves it. The tests, caps, and forms.
ADS swaps faster GDS write-offs for longer straight-line lives and no bonus depreciation; the IRS requires it for electing real-estate businesses.
IRS Notice 2026-11 locks in permanent 100% bonus depreciation for property acquired after Jan 19, 2025, with bigger Section 179 and expensable factories.
Self-hosting beats LLM APIs past ~$20K/mo in API spend, then the cluster becomes a 5-year asset with Section 179 or bonus depreciation.
Price each rental off replacement cost — about 1/20 per day — capitalize the fleet under Section 179 or bonus depreciation, and track utilization per item.
Arizona HB 4168 adopts most OBBBA tax breaks retroactive to 2025, but 100% bonus depreciation still needs an addback — Section 179 is the workaround.
GPU rental income is Schedule C business income: deduct metered electricity, expense the card under 100% bonus depreciation, and pay quarterly estimates.
