#depreciation
Methods and strategies for depreciating fixed assets including straight-line, MACRS, and accelerated depreciation
Self-hosted Qdrant or Milvus beats Pinecone once query volume pushes per-unit metering past fixed infrastructure cost — often at 10 to 50M vectors.
Section 179 lets freelance editors expense a workstation or cinema camera in year one — if it is placed in service by December 31 with over 50% business use.
Amazon's Q3 2026 operating income rose 61% on AWS's 39% growth, but $77.3B of capex drove free cash flow to about -$33.5B, funded by $48.1B of new debt.
Close in one fixed order — post, reconcile, adjust, review, lock — so every account ties to evidence and the numbers stop moving after review.
Alphabet's Q3 2026 operating income rose 30% and Cloud revenue doubled, but $51.4B of capex topped cash flow, so free cash flow went negative $9.1B.
Azure grew 48% while capex missed its $50B guide on delayed capacity; net income rose 32% on an OpenAI comparison, and free cash flow fell 27%.
ADS spreads MACRS basis straight-line over longer lives — and the IRS requires it for low-business-use vehicles, foreign-use assets, and real-estate firms.
Book depreciation follows GAAP matching; tax depreciation follows MACRS plus Section 179 and bonus — so one asset shows two different expenses.
Avoidable interest on self-built assets is capitalized to the asset — tier rates over WAAE, capped at actual interest; tax follows Section 263A.
Life-cycle costing totals purchase, installation, operating, maintenance, financing, and disposal costs — so the cheaper quote stops winning on price alone.
Impairment hits only when undiscounted cash flows fall short of carrying amount; the loss is book value minus fair value, and GAAP never reverses it.
The IRS half-year rule gives every asset six months, mid-quarter re-times each by quarter, and mid-month halves real estate's first and last months.
