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Starting Your Business/Keeping Tax RecordsWhat are Business AssetsDepreciation of Business PropertyDepreciation is a loss in the value of property over the time the property is being used. Events that can cause property to depreciate include wear and tear, age, deterioration, and obsolescence. You can get back your cost of certain property by taking deductions for depreciation. This includes equipment you use in your business or for the production of income by taking deductions for depreciation. If property you acquire to use in your business has a useful life of more than one year, you generally cannot deduct the entire cost as a business expense in the year you acquire it. You must spread the cost over more than one tax year and deduct part of it each year. When Depreciation Begins and Ends Modified Accelerated Cost Recovery System (MACRS)
Important References Publication
946
How to Depreciate Property |