On musical instruments that will gain value, should I take depreciation now and pay capital gains on full amount when sold, or avoid deprec. and only pay tax on profit?

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On musical instruments that will gain value, should I take depreciation now and pay capital gains on full amount when sold, or avoid deprec. and only pay tax on profit?

If this is a depreciable asset, you should claim depreciation as an expense every year. This is because you are required to recapture all allowable depreciation when you sell the asset even if you did not claim depreciation.

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On musical instruments that will gain value, should I take depreciation now and pay capital gains on full amount when sold, or avoid deprec. and only pay tax on profit?

If this is a depreciable asset, you should claim depreciation as an expense every year. This is because you are required to recapture all allowable depreciation when you sell the asset even if you did not claim depreciation.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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