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Depreciation, section 179, bonus and amortization

SEE 2 Chapter 14 · IRS outline 2B3, 2D5

2025 was a strange year for depreciation. A truck bought in January could get 40% bonus, and the same truck bought two weeks later could get 100%. The section 179 limit doubled partway through the year, for the whole year. Copperline Tools has bought equipment, a delivery van, a patent and a competitor's customer list, and Walt asks the one question every owner asks: 'Can't I just write it all off?' Often, for 2025, the answer is yes. Nadia makes Theo prove it.

In this chapter

1. MACRS classes: what lasts how long
2. Conventions
3. Section 179 expensing
4. Bonus depreciation and qualified production property
5. Listed property and section 280F
6. Amortization: startup costs, section 197 and research
7. Depletion and correcting depreciation errors

This chapter has 7 lessons and 64 practice MCQs with explanations, plus flashcards and a recall sheet.

What this chapter covers

• MACRS classes and conventions
• section 179
• OBBBA bonus
• listed property and section 280F
• startup costs, section 197 and section 174A
• depletion
• correcting errors

Chapter 13: Workers, employment taxes and other taxes · Chapter 15: Travel, cars, interest, bad debts and the home office