There are many reasons to figure depreciation, but most people use it when it's time to do their business income taxes. Many years ago, if you were self employed or owned a business, the payments on a business or other business equipment, were deducted from your income as an expense. No longer is that the case because now there is a nifty little thing called depreciation, and you will need a
. depreciation schedule, sometimes called a depreciation chart to get this one right. Now, the total amount that you will pay for that same business truck is divided over a certain number of years as deemed by the tables, and you are only allowed to deduct the depreciated amount from your taxes each year. Now, when the depreciation is complete, you have deducted the same ending amount, which is good. The bad part is sometimes that amount can be drawn out for 7-10 years, which mean you can only deduct a small amount for a longer period of time. For a depreciate chart see http://www.ifbf.org/programs/commodity/farmmanagement/docs/DepreciationTables.pdf
