Hyperscalers are extending depreciation schedules for AI hardware. While this may look like "cooking the books" to inflate earnings, it's justified by the reality that even 7-8 year old TPUs and GPUs are still running at 100% utilization for less complex AI tasks, making them valuable for longer and validating the accounting change.

To maximize bonus depreciation on a new rental property, all qualifying assets like furniture, appliances, and renovations must be placed in service in the same tax year as the purchase. Delaying these upgrades pushes potential deductions to the following year, diminishing the immediate cash flow benefit.

A tax policy allowing for 100% accelerated depreciation on capital equipment like planes, tractors, and generators is creating super-hot markets for these assets. This provision is a significant driver of business investment and infrastructure build-out, contributing to higher GDP growth.

Most real estate funds use floating-rate debt to facilitate quick flips for carried interest, a suboptimal strategy for taxable investors. Using long-term, fixed-rate financing enables longer hold periods, which is essential to fully benefit from the tax deferral provided by an asset's depreciation shield.

Investor Michael Burry argues that hyperscalers overstate profits by depreciating GPUs over 5-6 years when their economic usefulness is only 2-3 years due to rapid technological advances. This accounting practice, which Burry calls a "common fraud," masks true costs and inflates valuations.

Residential buildings don't qualify for bonus depreciation due to a 27.5-year depreciation schedule. A cost segregation study reclassifies building components (e.g., HVAC, flooring) into shorter-lived assets. This specialized analysis makes those specific components eligible for the 100% upfront tax write-off.

According to the Kalecki-Levy equation, gross investment spending immediately becomes revenue for another company. Unlike consumption-driven revenue which has immediate wage costs, the cost of investment (depreciation) is recognized slowly over time, creating a powerful, immediate boost to aggregate corporate profits.

An overlooked driver for enterprise robotics adoption is the "100% bonus appreciation" clause in US tax law. This allows a company to depreciate the entire cost of a qualifying asset, such as a robot, in the first year. This dramatically shortens the payback period and strengthens the business case for automation.

Contrary to popular belief, spending money just for a year-end tax write-off can be a poor financial move. If your income is on a sharp upward trajectory, delaying the expense to the next year could result in a larger tax saving, as you'll likely be in a higher tax bracket.