Depreciation Methods for Tax Purposes

Which Depreciation Method is Best for Tax Purposes?

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Question

From tax perspective, which of the following depreciation methods is usually the best?

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Explanations

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A. B. C. D.

A

Since Double Declining results in the biggest depreciation expense of the four in the initial years, it allows the biggest deferral of tax payments. These deferrals can sometimes be for an indefinite period, thus avoiding them almost altogether.

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