Normally, you would be allowed to deduct only what you paid over the market value of the dinner or auction booty.

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The current system, where firms gradually deduct the cost of new equipment over time, is complicated and often unfair.

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Typically, the business might only be able to deduct the value of that new equipment over the course of several years.

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For example, by allowing homeowners to deduct mortgage interest payments, the Code promotes home ownership over renting.

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You might assume that after you turn all such expenses over to your accountant each year, he or she will fully deduct all of these things on your current return.

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Firms would be allowed to deduct immediately the cost of all spending on long-term equipment rather than depreciate it over time.

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It allows a business to deduct the entire cost of a small capital purchase immediately, rather than writing it off over time and having to hassle with depreciation schedules.

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It typically works in conjunction with another break, Sec. 179 that allows a business to deduct the entire cost of a small capital purchase immediately, rather than writing it off over time and having to hassle with depreciation schedules.

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Generous depreciation rules allow businesses to deduct more (or all) of the cost of investments in the first year, rather than depreciating over a number of years, meaning the business can reduce its taxable income upfront.

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