Reducing tax burden is on every startups mind once tax season rolls around. Accelerated depreciation is one method to look into.
This accounting logic calculates how the value of something, like office furniture or vehicles, decreases over time.
Rather than waiting to see how your asset depreciates throughout its lifetime, you’re able to claim wear and tear upfront. This way, you can deduct more money on your taxes earlier.
It’s important to note that accelerated depreciation reduces your ability to claim tax benefits in the long term.