Section 179 allows you to deduct the entire cost of an asset in the year you acquire and start using it for business. Any Section 179 deduction that is not used in the current year because it is greater than your business income can be carried over to subsequent years.
It might seem like an easy choice to use expensing if you qualify. But in some cases, it might pay to use regular depreciation. That could be the case if you expect your business income—and hence your business tax bracket—to rise in the future. A higher tax bracket could make the deduction worth more in later years. The links below explain the different types of depreciation available for your business assets including straight line, accelerated, and bonus depreciation.
What is a Section 179 deduction?
Depreciation of Business Assets
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