Depreciation recapture is the process by which the IRS reclaims tax benefits previously obtained through depreciation when an investor sells a depreciable asset for more than its depreciated value.

Accounting for depreciation can be a helpful accounting trick when businesses make a major purchase. Depreciation has several different meanings, depending on the context in which it’s being used.

Depreciation is the gradual loss of value of an asset over time. This concept is not just for accountants or economists; it affects everyone who owns tangible assets like cars, computers, or machinery ...

Discover the difference between economic and accounting depreciation and learn how each affects asset valuation and financial decisions.

Assets like equipment, vehicles and furniture lose value as they age. Parts wear out and pieces break, eventually requiring repair or replacement. Depreciation helps companies account for the ...

Karla Dennis, EA, MST, is CFO/CEO of the award-winning tax accounting firm KDA Inc.—specializing in tax planning. Buried in the July 4 tax overhaul, formally titled the One Big Beautiful Bill Act, was ...

Amortization and depreciation are accounting methods used to allocate the cost of assets over their useful lives.

Until recently, bonus depreciation was on track to phase out entirely by 2027, leaving business owners with shrinking tax deductions and added uncertainty around capital planning. Then, on July 4, ...

Learn what Cash Flow After Taxes (CFAT) is, how to calculate it, and why it's crucial for assessing a company's financial health with step-by-step examples.