^ You have to amortize the equipment/purchases out over a yearly schedule. But if you bought one every year, you'd be saving a shit ton of money that was otherwise going to the gubbmint. In the long run.
Related COGS and other expenses of running the business could be deducted in full yearly tho.
That was my understanding of it as well.
One of the things I've been pondering is the tax ramifications of prepaying media buys by a large amount prior to Dec 31st to reduce tax liability for the current year. I really can't understand how it could legally reduce your tax liability since the moment you buy it it should be considered an asset of some sort and not actually change your companies assets and thus not reduce your tax liability. The same as a business couldn't stock up on inventory prior to the end of the year to reduce tax liability, unless the inventory they bought fell significantly in value before the end of the year as well.
Anyone have any clues as to how prepaying a media buy could legally reduce your tax liability? Maybe I'm looking at it wrong and there is some reason you can claim a company owing you 100k in media is in no way an asset that must be counted on a balance sheet.