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Income Tax Planning
Chapter 8: Other Deductions, Penalties, and Loss Disallowance/DEPRECIATION
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 8: Other Deductions, Penalties, and Loss Disallowance

DEPRECIATION

01.Core Concepts

• Allowed for assets used in: • A trade or business • An activity for the production of income • Represents return of capital • Basis is returned to the owner over the useful life of the asset. • Personal assets and land are not depreciated. • Basis is returned to the owner when the property is sold.