Depreciating things for tax purposes isn't about their actual value dropping, that's not always relevant, other than figuring out the timeline of how they can b

Depreciating things for tax purposes isn't about their actual value dropping, that's not always relevant, other than figuring out the timeline of how they can be deducted. It's about being forced to gradually deduct the expense of capital assets. (As opposed to all at once) We tax income, because that's the actual money you make. So if I buy a business for $500 and only make $100 a year, I'm not really making money until after 5 years. If I have to depreciate that asset over 10 years then I can deduct $50 a year and have to pay taxes on $50. Depreciation is a handout to the tax man honestly. The reality is that until you have made more money than the purchase price you are not really making money.