Why Book and Tax Depreciation Never Agree
Book depreciation follows GAAP matching; tax depreciation follows MACRS plus Section 179 and bonus — so one asset shows two different expenses.
#section-179
Section 179
IRC Section 179 expensing election, annual deduction caps, phase-out thresholds, and qualifying property for small business equipment write-offs
Tax Write-Offs Every Voice-Over Artist Misses: Why Acoustic Treatment, Audition Subscriptions, and a Home Studio Square-Footage Log All Belong on Schedule C
Voice-over artists report 1099 income on Schedule C, so every studio expense cuts both income and self-employment tax — start with the home office.
Depreciation Conventions, Explained: Which Timing Rule Applies to Your Assets
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.
Equipment Lease vs. Buy: Monthly Payments, Section 179 Tax Breaks, Obsolescence Risk, and End-of-Term Options
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.
Capitalization Policy, Explained: The $2,500 and $5,000 De Minimis Safe Harbors, the Annual Election Statement, and the Companion Rules
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, Explained: How Small Businesses Report Section 179, Bonus and MACRS Depreciation, Listed Property, and Amortization
Form 4562 reports Section 179, bonus and MACRS depreciation across six parts — expense first, bonus second, MACRS on the rest.
Lease vs. Buy for Business Equipment: How to Run the Analysis Like Your Banker Would
Leasing vs. buying comes down to after-tax present value — Section 179 favors buying, obsolescence risk favors leasing. Run the NAL to decide.
CapEx vs. OpEx: How Capital and Operating Expenses Differ on Your Books, Your Tax Return, and Your Cash Flow Statement
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.
Equipment Financing Agreements (EFAs): Ownership From Day One, Fixed Payments, and Section 179 Deductions
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.
Listed Property, Explained: The Over-50% Business-Use Test, Mileage-Log Rules, and Section 280F Luxury-Car Limits
Vehicles and cameras lose accelerated depreciation unless business use tops 50% — and only a contemporaneous mileage log proves it. The tests, caps, and forms.
100% Bonus Depreciation Is Permanent Again: What the One Big Beautiful Bill Means for Equipment, Vehicles, and Qualified Production Property
IRS Notice 2026-11 locks in permanent 100% bonus depreciation for property acquired after Jan 19, 2025, with bigger Section 179 and expensable factories.
The GPU Breakeven Line: When a Self-Hosted vLLM Cluster Beats the LLM API Bill
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.