Deducting CapEx

Both Bonus Depreciation and Section 179 Expensing allows capital expenditure (CapEx) to be deducted from business income, but key differences exist between the two methods.

The TCJA liberalized writing off capital costs with the introduction of a Bonus Depreciation. Section 179 Expensing is still available for taking CapEx deductions. We show the similarities and key differences between the two methods in the table below.

An overview of NOL (Net Operating Loss) is provided in our blog “Business Loss Treatments.”

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