How Sole Proprietors can Depreciate Assets

Depreciating assets can be a good way to help reduce taxes for sole proprietors and helps lower the cost burden of buying new equipment for a business. The IRS allows different methods including the "Section 179" and the "Modified Accelerated Cost Recovery System." The maximum amount can change from year to year and ranges in the hundreds of thousands. The deduction gets reported on line 13 of IRS Schedule C along with other expenses on the form.

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