Tax Deduction for Depreciation

Under the Income Tax Act, depreciation is allowed. An Income Tax Act deduction allows a taxpayer to deduct a reduction in the real value of a tangible or intangible asset. Depreciation – what is it? Depreciation refers to writing off the cost of an asset over its useful life. An entity using depreciable assets must deduct depreciation in its profit and loss statements, and it can deduct it using either the Straight-Line method or the Written Down Value (WDV) method. It is widely used to calculate depreciation using the WDV method. However, if the undertaking generates or distributes power, the […]