#section-179
IRC Section 179 expensing election, annual deduction caps, phase-out thresholds, and qualifying property for small business equipment write-offs
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.
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.
Vehicles and cameras lose accelerated depreciation unless business use tops 50% — and only a contemporaneous mileage log proves it. The tests, caps, and forms.
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.
A duck boat route lives or dies on insurance per passenger and per-hull maintenance — capitalize the 175.124 retrofit and reserve for winter.
Bid drainage tile by the foot: 30-foot spacing doubles footage per acre versus 60-foot. Price the outlet separately, and use Section 179 on the plow.
Arizona HB 4168 adopts most OBBBA tax breaks retroactive to 2025, but 100% bonus depreciation still needs an addback — Section 179 is the workaround.
