Should You Expense or Depreciate Your Capital Asset?
If you own a business, you know that you may accelerate the expensing of qualified capital purchases. This can be done within two special provisions in the tax code:
The annual amount of qualified assets that may be expensed (instead of depreciated) was raised to $1.08 million for 2022. This benefit can be maximized as long as the total assets purchased by your business don't exceed $2.7 million. Qualified purchases can be new or used equipment, as well as qualified software placed in service during the year.