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Business & farm
Something a lot of folks don't seem to understand about depreciation.
All depreciation, including SEC 179 and the special depreciation allowance is not a permanent deduction. In the future when you sell or otherwise dispose of the business and/or assets, all depreciation taken is recaptured and taxed in the year of sale or disposition. So while you'll see us use the term "depreciation deduction", it's important to understand that deduction is not permanent.
There is one instance when that depreciation may (or may not) become permanent. That's when the owner of the business or asset dies while the asset is still "In use" for the production of income and it gets passed to a heir.
‎June 24, 2020
5:07 PM