In practice, depreciation does not eliminate tax cost over time. It merely redistributes it. When an asset is eventually disposed of, depreciation recapture comes into play, a mec ...

Depreciation recapture taxes gains from selling depreciated property as ordinary income, reclaiming prior tax benefits. If you’re a business owner, you’ve probably bought at least some property to use ...

Here’s how you can use business asset depreciation to reduce your taxable income and save money. Because business assets such as computers, copy machines and other equipment wear out over time, you ...

To continue reading this content, please enable JavaScript in your browser settings and refresh this page. For the last five years, manufacturers have enjoyed a bonus ...

Most tangible assets lose value over time. Equipment wears out, buildings require regular maintenance and upkeep, and computers become obsolete. To reflect the steady loss of value in capital assets, ...

Assets like equipment, vehicles and furniture lose value as they age. Parts wear out and pieces break, eventually requiring repair or replacement. Depreciation helps companies account for the ...