Buying and selling assets are usually a large part of the foundation of a business startup costs can add up quickly, so knowing what deductions are available is essential. Depreciation plays a vital role in this process.

At Risk Limitations prevent taxpayers from deducting more then their actual stake in the business. This usually means that for tax purpose, only money your personally liable for is considered "at risk" and therefore tax deductible.

Stock versus debt basis

How much can the taxpayer deduct?

Gross vs net profit

Qualified business income deduction

Qualified business income expectations and components.

Quailified Business Income

Section 179 vs Bonus

Bonus depreciation

Another option for tax year 2023, this election allows a tax payer to recover all or part of certain qualifying property, up to a limit, by deducting it in the year the asset was placed in service.(instead of depreciating, you can elect section 179)

The applicable convention determines the portion of the tax year for which depreciation is allowable during a year at the property is...

Depreciation convention, Classlife, useful life of an asset.

What is depreciation?