topic Depreciation reduces my taxable income I know. But can I withdraw the depreciate amount in cash without tax consequence in Retirement tax questions https://ttlc.intuit.com/community/retirement/discussion/depreciation-reduces-my-taxable-income-i-know-but-can-i-withdraw-the-depreciate-amount-in-cash/01/541510#M50464 Wed, 05 Jun 2019 04:36:47 GMT jbbeede 2019-06-05T04:36:47Z Depreciation reduces my taxable income I know. But can I withdraw the depreciate amount in cash without tax consequence https://ttlc.intuit.com/community/retirement/discussion/depreciation-reduces-my-taxable-income-i-know-but-can-i-withdraw-the-depreciate-amount-in-cash/01/541510#M50464 Wed, 05 Jun 2019 04:36:47 GMT https://ttlc.intuit.com/community/retirement/discussion/depreciation-reduces-my-taxable-income-i-know-but-can-i-withdraw-the-depreciate-amount-in-cash/01/541510#M50464 jbbeede 2019-06-05T04:36:47Z Depreciation does not work like a cash credit. Depreciati... https://ttlc.intuit.com/community/retirement/discussion/depreciation-does-not-work-like-a-cash-credit-depreciati/01/541517#M50467 <P>Depreciation does not work like a cash credit. Depreciation is a deduction that is spread out&nbsp;during more than one Tax Year to account for the loss of value to an asset. This means that you are able to place a dollar amount to the loss of value over time to a large purchase. This means that you <B>cannot withdraw a cash amount </B>without Tax Consequence. Since the depreciation has already been accounted for with an asset there is not cash amount to draw from. If you withdraw cash you will have to account for it as Business Expense and deduct it in Schedule C or you will have to consider it an Owner's draw and pay Self-Employment Taxes on it. <BR /></P> Wed, 05 Jun 2019 04:36:49 GMT https://ttlc.intuit.com/community/retirement/discussion/depreciation-does-not-work-like-a-cash-credit-depreciati/01/541517#M50467 JaimeG 2019-06-05T04:36:49Z
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topic Depreciation reduces my taxable income I know. But can I withdraw the depreciate amount in cash without tax consequence in Retirement tax questions
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Depreciation reduces my taxable income I know. But can I withdraw the depreciate amount in cash without tax consequence
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Depreciation does not work like a cash credit. Depreciati...
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<P>Depreciation does not work like a cash credit. Depreciation is a deduction that is spread out&nbsp;during more than one Tax Year to account for the loss of value to an asset. This means that you are able to place a dollar amount to the loss of value over time to a large purchase. This means that you <B>cannot withdraw a cash amount </B>without Tax Consequence. Since the depreciation has already been accounted for with an asset there is not cash amount to draw from. If you withdraw cash you will have to account for it as Business Expense and deduct it in Schedule C or you will have to consider it an Owner's draw and pay Self-Employment Taxes on it. <BR /></P>
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