Which Form 1120 C Depreciation 2023-2024

Howdy you're watching aardvark tax TV I'm Sean kenefick I'm an enrolled agent and customer service representative here at aardvark tax this video is part of a complete continuing education course available at our website w wrff tax comm today we're going to talk about depreciation depreciation is a method we use to deduct the expenses incurred when we bought certain business property it's different from a standard expense though in that we with expenses we take the entire amount in the year in which we incurred the cost with depreciation we spread that deduction over a period of years typically what we would consider the useful life of the object depreciation has two rules associated with it the first is that it's for a property that we use in business or to generate income so it also applies to passive activities such as rental property second any object that we purchase that it's going to be depreciated have to have a useful life of over one year typically you will find that objects that have less than one year of useful business life do not need to be depreciated we start depreciating when we place that object in service or make it available to our business so that doesn't necessarily mean that we have to use the object immediately it just means we've made it available for our business examples here might be that I bought a rental property and I have not had any tenants yet even though I don't have tenants in the building the fact that I made it available for rent means it's been placed in service another example might be that I'm opening a store and a month before the store opens I buy a computer that I'm going to use as a cash...