A $100,000 truck can be written off entirely in year one, or depreciated at roughly 20% per year for five years. The IRS lets you pick one method per asset, and your choice locks in how you claim the expense going forward.
Liabilities such as machines, those are spread out over time. So if I buy a truck, they only let me to write— they only let me write off, say I buy a truck for $100,000, they make me take $25,000 a year because they'll let— or $20,000 a year because they'll let me write it off for 5 years. I can't write it— I can write it off all in year 1, but then I can't write it off again ever. So I could write off a $100,000 truck, either 100% of it or do 20% of it times 5 years. Does that make sense? On a liability.
