Section 179

Equipment Depreciation Methods for Contractors: Straight-Line, MACRS, and Section 179

Contractors own millions of dollars of equipment — excavators, cranes, trucks, loaders. How that equipment gets depreciated affects tax liability, financial statements, and bonding ratios. The right method depends on the contractor's tax strategy, accounting policy, and the specific equipment. Straight-line for GAAP, MACRS for tax, Section 179 or bonus depreciation for tax acceleration — the layers get complex.