Should You Eat Ice Cream for Breakfast? Deciding Whether to Claim Accelerated Depreciation
Be sure to read until the end for a special trivia question!
It’s okay to enjoy some indulgences, as long as the timing makes sense.
Most people agree that eating ice cream for breakfast is a questionable life choice.
And yet… sometimes it happens.
Accelerated depreciation falls into the same category. It can be delightful in the moment, but if you don’t understand what you’re doing (or why you’re doing it), you may regret it later.
Let’s talk about what depreciation is, why accelerated depreciation exists, and when front-loading deductions actually makes sense.
Depreciation: The Part That Actually Makes Sense
When you operate a business and purchase capital assets—things like equipment, vehicles, or machinery—the IRS allows you to deduct the loss in value of those assets over the period you use them for business.
Conceptually, this is reasonable.
If you buy something that wears out over time, the tax code recognizes that you shouldn’t be taxed on income that was effectively consumed by that asset’s decline in value.
Where things start to get messy is how depreciation is calculated.
Depreciation depends on:
The asset’s cost
When it was placed in service
Its recovery period
The applicable convention
And because those rules are complicated, depreciation is frequently calculated incorrectly—sometimes by taxpayers, sometimes by software, and sometimes by professionals who don’t look closely.
Enter Accelerated Depreciation (a.k.a. Ice Cream for Breakfast)
The IRS allows certain forms of accelerated depreciation, primarily:
Section 179
Bonus depreciation (IRC §168(k))
Both allow you to deduct more of the asset’s cost earlier, rather than spreading it evenly over several years.
To keep this post readable, I’m not going to dive into:
Recovery periods
Half-year vs mid-quarter conventions
The technical differences between Section 179 and bonus depreciation
A few high-level points are enough:
You generally cannot use Section 179 or bonus depreciation on buildings or land
You can often use them on equipment, machinery, and certain vehicles
Accelerated depreciation means bigger deductions now, smaller (or no) deductions later
Which brings us to the ice cream analogy.
Why call this “ice cream for breakfast”?
Because you’re getting the good stuff early. It feels great in the moment—but you’re borrowing enjoyment from the future.
The Dreaded Word: Recapture
This is the part that causes problems.
In certain situations, the IRS requires you to pay back some or all of the depreciation you previously deducted. This is known as depreciation recapture.
The most common triggers are:
Selling the asset
Converting the asset to personal use
Dropping business use of “listed property” (such as vehicles, cameras, or video equipment) below 50%
If the depreciation you claimed roughly matches the asset’s actual loss in market value, recapture usually isn’t a big deal.
But when there’s a large gap between what you deducted and what the asset actually lost in value, the IRS expects you to report the difference as income.
Example
You purchase a high-end EKG machine for $5,000 and use accelerated depreciation to deduct the full amount in Year 1.
Two years later, you close your practice and sell your equipment. The EKG machine sells for $2,000.
Economically, the machine lost $3,000 in value.
But you deducted $5,000.
That $2,000 difference gets added back to income, and you pay tax on it.
I’ve also seen clients:
Fully depreciate an expensive vehicle in one year
Then add most of it back into income the following year because they switched to W-2 work and no longer used the vehicle for business
Ice cream first. Asparagus later.
Reasons to Be Wary of Accelerated Depreciation
Accelerated depreciation isn’t “bad,” but it is easy to misuse.
Here are a few reasons I often caution clients.
1. Income often increases over time
Many of my clients are early in their careers. Their income tends to rise year after year.
That increases the likelihood that:
The deduction happens in a lower-tax year
The recapture happens in a higher-tax year
That’s the opposite of what most people intend.
2. Recapture can create surprise tax bills
If you don’t plan for recapture, the added income can show up unexpectedly and translate into a painful April surprise.
Ice cream makes a fine breakfast.
No one wants asparagus for dessert.
3. States complicate everything
Most states do not allow accelerated depreciation to the same extent as the federal government.
That means:
One depreciation schedule for federal
Another for state
Both must be tracked year after year
What looked simple in Year 1 can turn into a bookkeeping headache by Year 4.
When Ice Cream for Breakfast Actually Makes Sense
Please pardon the tortured metaphors to follow.
Despite all of this, there are situations where accelerated depreciation is the right call.
1. You’re in an unusually high-tax year
Maybe:
Your income spiked
Student loans were forgiven
You’re full-time and plan to decrease your workload next year
If deductions are especially valuable this year, front-loading them may make sense.
Think of this as Baskin-Robbins-only-before-lunch logic.
If you prefer Mint Chocolate Chip but they stop serving it in the afternoon, perhaps you buy it now rather than vanilla later.
2. You have a short-term cash flow issue
Sometimes the goal isn’t lifetime tax optimization—it’s reducing how much you owe Uncle Sam right now so you can use the cash elsewhere.
This is “ice cream is the only food in the house and you’re hungry” logic.
Not ideal long-term nutrition—but understandable.
3. Your state tax situation is simple
If:
You live in a no-income-tax state, or
Your state largely conforms to federal depreciation rules
Then accelerated depreciation can simplify life.
One big bowl of ice cream now instead of washing lots of little bowls later.
TaxSmart Takeaway
Accelerated depreciation is not inherently good or bad—it’s a timing decision.
Eating ice cream for breakfast can be fun.
Doing it every day without thinking ahead usually ends poorly.
Before claiming accelerated depreciation, ask:
What will my income look like in future years?
What happens if I sell or stop using this asset?
Am I prepared for recapture?
Am I trading long-term simplicity for short-term relief?
If you can answer those questions confidently, ice cream might be on the menu.
If not, a more balanced breakfast may be the smarter choice.
Special Trivia Question!
Most real estate property isn’t eligible for accelerated depreciation, but there are some exceptions. Which of these could be depreciated upfront?
A. A new roof
B. A new fence
C. Drywall
D. An elevator
E. B and C
Click here for the answer!