Question

I have a tax question about how to claim depreciation. How does the depreciation deduction affect itemizing deductions?

Answer

When you claim depreciation, your itemized deductions should not be affected if you are either of these:

  • Sole proprietor
  • Farmer

This applies whether you itemize on Schedule A or claim the standard deduction.

If you’re a sole proprietor, report your depreciation deduction as a trade or business expense. Report it on your Schedule C.

If you’re a farmer, use Schedule F.

You’ll claim depreciation as an itemized deduction if both of these apply:

  • You’re an employee.
  • You’re claiming depreciation as an unreimbursed employee business expense.

You’ll use Schedule A to itemize. Your depreciation deduction is subject to the 2% of adjusted gross income (AGI) limit. So, use depreciation when deciding whether to itemize or claim the standard deduction.

Related Topics

Related Resources

I have a question about deducting child support on my tax return. Can you deduct the child support payments made to ano

Can you deduct child support payments from your taxes? Learn more from the tax experts at H&R Block.

I have a question about first time home buyer taxes. Is there a first time home buyer tax credit available?

Will being a first-time homeowner affect your tax return? What deductions can you claim? Learn more from the tax experts from H&R Block.

I have a question about claiming charitable contributions. I’m a college student and my parents’ dependent. Can I clai

Is claiming charitable contributions possible if you're a dependent? Learn more from the tax experts at H&R Block.

I have a question about a business phone tax deduction. My job requires that I have a cell phone. Would I qualify for

How can you file for a business cell phone deduction? Learn more from the tax experts at H&R Block.