05 Reduce Your Taxes with Depreciation

Click to enlarge image(s)

Everything wears out. In tax terms, this is depreciation. Congress has provided a tax deduction for depreciation of assets used in a trade or business. The method to calculate depreciation for your personal residence used partly for business is specified in part I. Depreciation of your automobile used in your home-based business is described. Depreciation for office equipment and furniture is discussed in part III. A very big bonus is the section 179 deduction; this is discussed in part IV. Finally, the records you need to keep and maintain are listed in part V.