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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Drive Down Your Taxes with These Vehicle Deductions

business vehicle

Car and truck expenses can be confusing on your tax return. What are considered eligible expenses? And what are the current limits and mileage rates? Key takeaways: An individual who owns a business or is self-employed can deduct vehicle expenses  Automobile costs based on mileage or actual expenses are eligible Mileage rates have changed between…

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