Office equipment vs. supplies

Equipment can be “expensed” directly via a 179 deduction, but it is important to classify the difference between just regular supplies (paper, pens) and equipment (computers, furniture, etc.). Depreciation is standard for equipment, where the expense is taken over the life of the equipment (generally 5 years for computers, printers and other electronics). You can choose to expense it all in year 1, but if you have a growing business, it is better expense over 5 years, as each year you will be put in a higher income bracket, so it’s important to have expenses to offset this.