So sorry. Here, let's make it simple so that you don't have to read more than three sentences:
Yes. Section 179 and Bonus Depreciation. If your accountant hasn't heard of these and still claims that you can't deduct the entirety of $50,000 in capital expenses in the year that you spent it, then get a new accountant.
Mathematics fail; 11 years is not half of my life. I see now why you blindly accept what accountants tell you.
If the people you pay are telling you that you can't deduct the expense of a $50,000 server on your return, then they're leaving stones unturned and you need to find new accountants. Don't take my word for it; read the link I posted.
Your accountants are apparently not keeping up to date with changes in the law, and they are apparently telling you that you still have to amortize every capital expense over several years, which is no longer true. It doesn't really matter whether you asked two accountants or fifty-two; the laws have changed whether your harem of accountants know it or not.
11 years in this business. Twice that is 22. You're not over 30. Add in the four years I owned a furniture store (and discount the time I spent managing expansion for a national chain) and you're up to 15. Twice that is 30. You're not over 30.
And you're taking a random (not real) example and trying to pin your entire hopes on that one argument. I don't know how much servers cost. I have people who spec them out and have a budget. If they spend all the budget on one, that's their deal. I don't know. I do know that when we look at the taxes I've got equipment from three or four years ago still on there and they all dwindle down at varying rates depending on what rule was in place at the time of purchase. And I don't get to take full credit for the one I bought this year.
So let me make this simple for you, okay?
Let's say I bought $200,000 worth of equipment. Had to. No choice. Had to keep things going. I don't know off the top of my head what the schedule is so let's say I can only count 25% of the cost for THIS year's taxes. That's $50,000.
Now let's assume my business had gross receipts of $500,000. And I spend $150,000 on salaries and benefits. Another $50,000 on rent, travel, etc.
** Note: These are not real figures so quit hanging your pointed hat on them **
For tax purposes:
$500,000
- 150,000
- 50,000
- 50,000
____________
Profit: $250,000. Oh SHIT!! It's the rich. Let's tax the fuck out of this guy!!!
Reality:
$500,000
- 150,000
- 50,000
- 200,000
__________
Profit: $100,000
That's what goes to the tax return. Now consider for the moment that in that total I have yet to pay myself a dime.
From Obama's perspective I "made" 250k and am a rich bastard who needs to be held upside down and have my pockets turned out. In the reality of managing the business, however, my accessible cash is less than half what the Chairman sees.
I realize that over a period of years I can keep knocking down the taxes by using dwindling portions of the equipment purchase. I also realize that in subsequent tax years the same kind of thing will keep happening. There will be shit to buy, things to do. Blah, blah, blah, flippity fucking blah. Please for the love of God quit trying to impress me with your whippersnapper knowledge of the tax code. I could give a fuck.
So I guess you can tell me that it will all even out one day. Really? Maybe if I sell it. But no, they'll want to zap the SHIT out of any proceeds I might get from the sale. So maybe if i retire. Or maybe they just keep taxing us "rich" folks until we give up and do something else.
And for the record? What I do no longer has much impact on what I make on a day to day basis. It's sad actually. I kill bears. I look for new places to hunt. I think of ways to do things differently.
Right now I've gunned down a nice bear and am in the process of skinning it and apportioning the pieces for others to use to make me more.