Depreciation allows property owners to reduce annual income taxes by deducting a percentage of the property’s value as an expense, but it increases the taxable capital gain when the property is sold, potentially leading to higher future tax obligations
When an individual or company buys an asset that will have a utility life over a number of years the tax system does not allow for the deduction of its cost as an expense in the year in which it was purchased.
When accounting for an asset, Quipu will treat differently the IVA from the amount to offset as an expense. Learn how to input its invoice and depreciations.