Write It Off Now. Depreciation, Capitalization Policy, and the 100% Bonus Rule
Write It Off Now. Depreciation, Capitalization Policy, and the 100% Bonus Rule  
Podcast: Small Business Tax Savings Podcast
Published On: Wed Nov 26 2025
Description: What if you could buy a computer, a machine, or new equipment and deduct the entire cost in the first year instead of waiting 5, 10, or even 30 years? Thanks to major updates in the One Big Beautiful Bill, you can now take a full write-off upfront.We break down how depreciation works, when to expense versus capitalize, and how the updated bonus depreciation and Section 179 rules give owners more control over their tax bill.You’ll learn how to time asset purchases, when to avoid front-loading deductions, and why every business needs a written capitalization policy.👉 Get the Free Tax Savings Starter Kit Built for Small Business Owners: https://www.taxsavingspodcast.com/starterkit🚀 Book your free demo call today! Click here or visit: https://taxelm.com/demo/Chapters(01:00) What Is Depreciation?Depreciation is the process of spreading out the cost of equipment, vehicles, technology, or buildings over time. Mike defines what qualifies and what does not.(02:23) Business Use RulesOnly the business-use portion of an asset can be depreciated. Land is never depreciated. Buildings and land improvements are.(02:45) Three Depreciation MethodsMike breaks down regular depreciation, 100 percent bonus depreciation, and Section 179 expensing. Each method serves a different purpose depending on your income and tax plan.(04:25) Section 179 Rules You Must KnowSection 179 lets you expense up to two and a half million dollars a year, but it cannot create a loss. Bonus depreciation can.(05:24) Which Method Should You UseThe best choice depends on your income, your goals, and whether you want to create or avoid a loss. Mike walks through three scenarios to help you choose.(07:12) When You Should Not Front Load DeductionsIf this year is low income and next year is high income, holding back depreciation may save more money. Timing matters.(11:44) Rules for DepreciationYou must be in business and the asset must be placed in service during the year. Paying for an item is not enough. It must be usable.(13:15) The Capitalization Policy Every Business Should HaveA written policy lets you immediately expense any asset under $2,500 per item. Mike explains how it works and why it saves time and paperwork.(16:47) What Happens When You Sell a Depreciated AssetIf you sell an asset you fully expensed, you may have depreciation recapture. Mike explains basis, gains, and how the tax works.Podcast Host:Mike Jesowshek, CPA – Founder and Host of Small Business Tax Savings PodcastJoin TaxElm: https://taxelm.com🚀 Visit:  https://www.TaxSavingsPodcast.com 🚀 Check Out TaxElm: https://taxelm.com/🚀 Join our Free Facebook Group: https://www.facebook.com/groups/taxsavings/🚀 YouTube: www.TaxSavingsTV.com👋🏼 GET IN TOUCHYou can Tweet @MJesowshek with any feedback, ideas, or thoughts about the lessons you've learned from the episodes. We want to thank you personally for tuning in 🙏🙌LEAVE A REVIEWIf you enjoy the podcast, please leave a 5-star review on Apple Podcasts or Spotify—it helps more business owners find the show ⭐🎙 ABOUT THE PODCASTThe Small Business Tax Savings Podcast is your go-to resource for cutting-edge tax strategies to help entrepreneurs legally slash their tax bills. Hosted by Mike Jesowshek, CPA, this show breaks down complex tax topics into clear, no-fluff insights so you can keep more of your hard-earned money.