@Opus 17 wrote:There are two safe harbors for small businesses, if you qualify for one of them, you can deduct the entire cost as an expense rather than depreciate it as an asset, then you don't have to recapture depreciation if you sell.
Opus's answer is great and I agree with it.
The comment about depreciation recapture is misleading though. It may not be depreciation recapture, but it is still reported as a sale (just as if it was a depreciable asset) and the gain is taxable at ordinary rates. See the Instructions for Line 10 of the 4797 Instruction.
