Depreciation is an annual income tax deduction that allows you to recover the cost or other basis of certain property over the time you use the property. It is an allowance for the wear and tear, deterioration, or obsolescence of the property.
WHICH PROPERTIES CAN BE DEPRECIATED
You can depreciate most types of tangible property (except land), such as buildings, machinery, vehicles, furniture, and equipment. You can also depreciate certain intangible properties, such as patents, copyrights, and computer software.
WHEN PROPERTY CAN BE DEPRECIATED
Property may be depreciated if it meets all the following requirements:
The taxpayer owns the property Read more