Bookkeeping

Since depreciation expense is tax-deductible, companies generally prefer to maximize depreciation expenses as quickly as they can on their tax filings. Corporations can use a variety of different depreciation methods such as double declining balance and sum-of-years-digits to lower taxes in the early years. Tax shields allow taxpayers to reduce the amount of taxes owed …

Tax Shield Formula, Examples, Interest & Depreciation Tax Deductible Read More »