why does companies depreciate assets like buildings even though those assets may be increasing in a value
To deduct business expenses including the costs of purchasing assets, for some types of property the complete costs are deducted for the tax year of purchase. In other situations, the costs are recovered through depreciation over time. Generally, if the property retains value for longer than a year, depreciation is used for federal income tax purposes to recover the costs in lieu of an upfront one-time deduction. For certain types of property, such as buildings, the fair market value of the asset may go up over time. This has no bearing on depreciating the asset for federal tax purposes.
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