Page 41 - Keeping Business Records
P. 41
Depreciation (3/5)
Depreciation
• If property you acquire to use in
your business has a useful life that
extends substantially beyond the
year it is placed in service, 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. This method of
deducting the cost of business
property is called depreciation.
• Business property you must
depreciate includes the following
items.
• Office furniture.
• Buildings.
• Machinery and equipment.
https://lentcpa.com 39
