Startup & organizational costs
Eligible startup and organizational costs can be expensed up to certain limits in the first year, with the remainder amortized over time.
Section 179 expensing
- Allows immediate expensing of qualifying tangible property up to annual limits.
- Limited by taxable income; cannot create or increase a loss.
Bonus depreciation
- Allows a large percentage write‑off for new and certain used property.
- Not limited by taxable income; may create a loss.
Choosing a method
Model cash flow and future income. Section 179 is flexible but capped by income; bonus applies broadly and can create losses—useful for growth phases.