I have a tax question about how to claim depreciation. How does the depreciation deduction affect itemizing deductions?
When you claim depreciation, your itemized deductions should not be affected if you are either of these:
- Sole proprietor
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.
Is the child tax credit the same as the EIC? Learn more from the tax experts at H&R Block.
Can you deduct your child's college tuition if they filed their own return? Learn more from the tax experts at H&R Block.
Wondering if you need to fill out a tax return for your child? Learn more about filing taxes for a child from the experts at H&R Block.
Maximize tax savings and minimize fees and penalties with a personalized tax calendar. Learn more about income tax dates at H&R Block.