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Depreciation & Amortization: Turning Time into Tax Savings

  • Writer: Neerja Kwatra
    Neerja Kwatra
  • Dec 31, 2025
  • 1 min read

Depreciation reduces taxable income; amortization spreads out loan costs. Both are non-cash tools that build long-term value.

Types of Depreciation

  • Straight-Line: Even deductions over asset life (39 years for commercial).

  • Accelerated: Larger deductions early on, improving near-term cash flow.

Amortization: Covers intangible items like loan fees or tenant improvements.

Tip: Time your methods to align with your exit strategy — aggressive early write-offs may trigger recapture later.

⚠️ This blog is for informational purposes only. It may not apply to your specific situation. Please consult your CPA.

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