Depreciation

Depreciation in plain English

Depreciation is a tax concept for recovering the cost of certain business property over time, subject to detailed rules.

Where Depreciation shows up

Depreciation shows up when a truck, trailer, or major piece of equipment is purchased and treated as a business asset. Instead of deducting the full purchase price in one year, the cost may be recovered over multiple tax years — or, in some situations, using accelerated methods like Section 179 expensing or bonus depreciation. The rules are complex, the limits change, and the treatment affects both current-year tax and future years when the asset is sold. Review depreciation decisions with a qualified tax professional.

Verify Depreciation before filing

Definitions can depend on the form, tax year, or jurisdiction. Verify current official instructions before relying on a term for filing.

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