What kinds of property can be depreciated for tax purposes?
Only property used in a trade or business or in an income producing activity can be depreciated. Additionally, the property must be something that wears out or becomes obsolete and it must have a determinable useful life substantially beyond the tax year. The kinds of property that can be depreciated include, but are not limited to, machinery, equipment, buildings, vehicles, and furniture. Some intangible property may also be depreciable (e.g. patents). Depreciation is a complex topic. For more information, refer to Tax Topic 704, Depreciation, or Publication 946, How to Depreciate Property , or Publication 534 (PDF) , Depreciating Property Placed in Service Before 1987. References: • Publication 534 (PDF) , Depreciating Property Placed in Service Before 1987 • Publication 946 , How to Depreciate Property • Tax Topic 704 , Depreciation I purchased a computer last year to do online day trading part-time from home for additional income. Can I deduct or depreciate the cost of the computer
