What Is a Capital Expense? A Simple Tax Guide for Business Owners

Business professional reviewing capital expense data, property assets, equipment, and tax planning charts.

In a Nutshell A capital expense is money you spend on something that benefits your business for more than one year. Think buildings, equipment, vehicles, machinery, that kind of stuff. Unlike regular business costs (rent, salaries, paper clips), you can’t deduct the full amount the year you buy it. Instead, you spread the deduction across…

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A Basic Guide to Depreciation for Small Businesses

red arrow pointing down with dollar sign cracking the ground to represent depreciation

As a small business owner, you can deduct depreciation that your assets experience over time. Here’s what to know about depreciation and how to calculate it. Key takeaways: Depreciation is the loss of value an asset experiences over time Small businesses can deduct depreciation from assets like cars, property, and equipment There are three methods…

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