Sign in Subscribe

Topic

depreciation

A collection of 2 issues

Depreciation Recapture: What Investors Need to Know for Tax Season

What Is Depreciation Recapture? Depreciation recapture is a tax provision that requires investors to repay a portion of the depreciation deductions they previously claimed when they sell a depreciable asset, such as rental real estate or business equipment, for a profit. While depreciation lowers taxable income during the holding period,

Understanding Depreciation: Definition, Methods & Impact

What Is Depreciation? Depreciation is the systematic allocation of an asset’s cost over its useful life. In simpler terms, it represents how much of an asset’s value has been consumed as it ages, wears out, or becomes obsolete. Recognizing depreciation on financial statements aligns expenses with revenue, delivering