You have to know that depreciation is a valuable tax deduction:
You don’t have to spend cash in the current tax year to claim it (e.g., you could finance the purchase that you are depreciating).
Your depreciation deductions could create a tax loss in a year when your business has positive cash flow.
Your current tax deductions are more valuable than any future recapture amount due to the time value of money (assuming no significant changes in tax rates).
If you simply didn’t claim depreciation on an asset, didn’t know you could take depreciation, or just flat claimed the wrong depreciation, correcting depreciation could potentially save you thousands of dollars on this year’s tax return.
In this article, you will learn about common depreciation errors you could make, how you can fix them, and strategies you can utilize in the tax year when you make the corrections. ... Log in to view full article.