#fixed-assets
Accounting for long-term tangible assets including equipment, vehicles, furniture, and property
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.
Divide cost minus salvage by lifetime output for a per-unit rate, then multiply by actual production — ideal for equipment with uneven usage.
Depreciation expenses tangibles minus salvage value; amortization writes off intangibles with none — and the IRS stretches acquired intangibles over 15 years.
IRS de minimis safe harbor — expense business items up to $2,500 ($5,000 with audited financials) with a written policy plus an annual election.
Form 4562 reports Section 179, bonus and MACRS depreciation across six parts — expense first, bonus second, MACRS on the rest.
GAAP books assets at what you paid, not what they are worth — except securities, write-downs, and crypto, which follow fair value.
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.
An EFA is an installment sale — you own the equipment from day one, repay fixed payments with no stated interest rate, and deduct it under IRS Section 179.
ADS swaps faster GDS write-offs for longer straight-line lives and no bonus depreciation; the IRS requires it for electing real-estate businesses.
A BOP bundles liability, property, and business interruption for ~$83/month — but never covers workers’ comp, commercial auto, or professional liability.
Held for sale freezes depreciation once all six criteria are met; discontinued operations further requires a disposed component that is a strategic shift.
