How to Calculate Depreciation on Fixed Assets
How to Calculate Depreciation on Fixed Assets
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We all pay taxes on income. There are only two tools at our disposal to reduce that number: 1. Expenses - Money spent to gain that income. and 2. Depreciation - We use this for fixed assets we purchase that cannot be expensed. Instead the IRS allows us to calculate how much value that asset will lose each year and expense it. For example: We purchase a piece of equipment for $1,000 with a 5-year useful life and determine it has no value after that. Straight-line depreciation would allow us to ca
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