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Depreciation

Methods and strategies for depreciating fixed assets including straight-line, MACRS, and accelerated depreciation

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8 min read

Depreciation Recapture Explained: The Tax Bill Waiting When You Sell Depreciated Equipment or Real Estate

Depreciation recapture taxes the deductions you already took when you sell a business asset at a gain — Section 1245 equipment gains are recaptured as ordinary income at rates up to 37%, while Section 1250 real estate depreciation is capped at 25%. With 100% bonus depreciation restored and the Section 179 limit at $2,560,000 for 2026, a fully expensed asset has a $0 basis from day one, so nearly the entire sale price becomes taxable. Here's how the rules split, a worked example, and five strategies owners use to manage the bill.

Mike Thrift

depreciationfixed-assetstax-planning
10 min read

Charter Fishing Boat Bookkeeping: Per-Trip Costing, Crew Pay, and Surviving the Off-Season

A charter fishing operation grossing $126,000 a year can still not know what a single trip costs to run. This guide covers per-trip costing for fuel, bait, and mate pay ($100–$150 day rates plus 15–20% tips), 1099 vs. W-2 crew classification, vessel depreciation with Section 179's more-than-50% business-use test, why booking deposits are liabilities until the trip runs, off-season cash reserves, and the IRS's three-of-five-years profit test for hobby-loss scrutiny.

Mike Thrift

bookkeepingsmall-businessjob-costing
9 min read

Eyelash Extension Studio Bookkeeping: The Supply, Retail, and Depreciation Lines Most Lash Artists Get Wrong

A lash studio's costs don't fit one "supplies" line — service consumables, retail inventory, and depreciable equipment like lash beds and LED lamps each need their own account. This guide covers a six-category chart of accounts, the Section 179 deduction most lash artists miss, quarterly retail inventory counts, and booth-renter vs. employee classification.

Mike Thrift

bookkeepingbeautysmall-business
9 min read

Commercial Diving Company Bookkeeping: Saturation Gear Depreciation, Hazard Pay, and Job Costing

Commercial diving companies that depreciate saturation systems on a flat calendar schedule, lump hazard pay and depth pay into a single wages line, or book topside support crew as overhead routinely misprice their bids — this guide covers usage-based depreciation for saturation gear, the diver pay stack, and job-costing topside labor specific to commercial dive operations.

Mike Thrift

bookkeepingsmall-businessjob-costing
9 min read

Scuba Dive Shop Bookkeeping: Why Certification Training, Not Gear Sales, Keeps the Doors Open

Dive shops that book prepaid certification fees as revenue on receipt, lump training and retail into one sales account, or depreciate rental gear like retail inventory routinely understate their true profitability — this guide covers deferred revenue for course fees, tank-testing cost tracking, and instructor pay classification specific to dive centers.

Mike Thrift

dive-shopbookkeepingsmall-business
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