Can depreciation be included in the actual expenses method under an accountable plan?
No. Because depreciation is *NOT* a permanent deduction. All depreciation taken must be recaptured in the year the depreciable asset is sold or otherwise disposed of. That recaptured depreciation is then taxed in the year of recapture. Additionally, that recaptured depreciation adds to the bottom line AGI also, which can put one into a higher tax bracket potentially. But even if it does, recaptured depreciation itself is capped at being taxed at no more than 25%.
