While the purchase of long-term assets is not factored in the income statement (they are factored in your cash flow statement and balance sheet), depreciation on long-term assets is factored in.

Each year, the income statement is hit with a $1,500 depreciation expenses. That expense is offset on the balance sheet by the increase in accumulated depreciation which reduces the equipment's ...

In this case, the entire amount you deduct will hit your income statement as an expense. The maximum deduction changes periodically, but for 2019, it is $1,020,000.

For example, you can use straight-line depreciation to show the value of your assets in your income statement while claiming accelerated depreciation on your tax return to lower your tax bill.

Bonus depreciation phases out. As you can see in the table below, eligible property acquired and placed in service after September 27, 2017 but before January 1, 2023 qualifies for 100% bonus ...