IRS MACRS depreciation rules, Section 179 expensing, and bonus depreciation for equipment.
MACRS is the IRS depreciation system for equipment and property. Here's how asset classes, recovery periods, and depreciation rates work in 2026 — with concrete examples for freelancers and small businesses.
Read Article →Section 179 lets you deduct the full cost of equipment in one year instead of depreciating it. In 2026, the limit is $1,110,000 with a $2,770,000 phase-out threshold. Here's how to maximize your deduction.
Read Article →Bonus depreciation offers a 60% first-year tax deduction on qualified new equipment in 2026, phasing down from 80% in 2025. Learn how it works, what qualifies, and how to combine it with Section 179 for maximum savings.
Read Article →Not all business equipment is depreciated equally. Learn the critical difference between 5-year and 7-year MACRS property in 2026, with clear examples for cars, computers, office furniture, and light vs heavy equipment.
Read Article →Selling business equipment can trigger depreciation recapture — the IRS taxes the profit from accelerated depreciation at ordinary income rates. Learn how recapture works in 2026, how to calculate it, and how to minimize the tax impact.
Read Article →The de minimis safe harbor lets you deduct small equipment purchases immediately — no depreciation, no Section 179 election needed. In 2026, the limit is $2,500 per item or invoice. Learn how to use it and when it beats Section 179.
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