What's the difference between depreciating an asset and expensing it?

Expensing means deducting the full cost in the year you buy something; depreciating means spreading the deduction across the asset's useful life. By default, the tax code makes you depreciate larger, long-lived business assets — equipment, machinery, furniture, vehicles — over several years rather than all at once. But two provisions let you accelerate: Section 179 and bonus depreciation can let you expense much or all of qualifying purchases immediately. Smaller items and supplies are simply expensed. Which is better depends on timing: a big immediate write-off helps most in a high-income year, while spreading deductions can be worth more if you expect higher income (and higher tax rates) in later years. So expensing isn't automatically the smart move — match the deduction to the years when it offsets the most tax. A tax pro can sequence purchases to your advantage.