Tax Professional + Analyst | Enrolled Agent | Quickbooks ProAdvisor | Founder of Virtual Tax Services Firm
Depreciation can be an INCREDIBLY powerful tool for small business owners, but you need to understand the basics! ⤵️ When you purchase a depreciable asset for your business, you can recover a portion of the cost each year through depreciation. For example, if you purchase a really nice business computer that's worth $3,000, this asset class has a depreciable life of 5 years. That means over the next five years, you could get a $600 tax deduction for depreciation (if you're using the straight-line method). Need a tax accountant to help you figure it all out? You're in the right spot!