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The Internal Revenue Service (IRS) offers business owners gu

The Internal Revenue Service (IRS) offers business owners guidance on tax laws concerning the depreciation of porperty. Explain what the IRS' definition of depreciation is? What are three items that cannot be depreciated? explain why not. What three requirements must be met in order for property to be depreciated? Why are these requirements important?

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Explain what the IRS' definition of depreciation is.

The IRS defines depreciation as "an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property. It is an annual allowance for the wear and tear, deterioration, or obsolescence of the property."

What are three items that cannot be depreciated? Explain why not.

1. Land - you cannot depreciate land because the point of depreciation is to allow for the recovery of the cost of the asset. Land loses no value ...

Solution Summary

The Internal Revenue Service (IRS) offers business owners guidance on tax laws concerning the depreciation of porperty. Explain what the IRS' definition of depreciation is? What are three items that cannot be depreciated? explain why not. What three requirements must be met in order for property to be depreciated? Why are these requirements important?

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