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Internal Revenue Code of 1986

The set of laws in the United States that govern federal taxation.

Depreciable business assets

Items a business owns, like machinery, vehicles, or computers, that lose value over time and are used for more than one year.

Expensing

A tax accounting method that allows a business to immediately deduct the full cost of an eligible asset in the year it's purchased, rather than spreading the deduction over several years.

Inflation Adjustment

A change made to a dollar amount or limit to account for the general increase in prices over time, ensuring its real value remains consistent.

Taxable years

The annual accounting period used by a business or individual for calculating income tax obligations, typically a calendar year or a fiscal year.

Property placed in service

The point in time when an asset, like a piece of equipment, is ready and available for its intended use by a business, which determines when tax deductions related to it can begin.