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southeast nebraska | sand85 - 1/29/2026 07:35
Yes it does.
Repair expense is an expense, lessens cash flow.
Depreciation shows repayment capacity.
Same tax effect but not the same on the business operations/cash flow side.
how is it not the same on the "cash flow" side
I still have to pay for it the day the bill comes due, whether I am deprecating it or expensing it.
$22,000 bill for new axles on truck is still $22,000 for new axles on truck.
$24,000 in tractor repairs is still $24,000 in tractor repairs
etc. etc.
Both times "cash flow" consisted of me looking in my checking account and flowing cash out via a check.
How does this make any difference in reality. Not like the repair cost gets cheaper.
Sorry, I am clearly missing something here
Edited by piperfarmer 1/29/2026 07:58
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Tire tax question
