Asset Depreciation: Who Qualifies and What You Get
Learn how business owners can deduct the cost of expensive equipment like cameras and laptops over several years to manage tax obligations.
Asset depreciation allows business owners to spread the tax deduction for expensive equipment over the useful life of the item rather than claiming the whole cost at once.
Who it's for
This is for business owners who purchase equipment needed for their professional activities.
What you get
You can deduct the cost of items like cameras or laptops from your taxable income. Instead of one large deduction in the year you buy it, you write off the cost gradually over several years.
What it costs you
To use this, you must maintain strict bookkeeping. You are required to follow an official depreciation schedule, which dictates how much of the item's value you can claim each year.
The catch to know
There is an exception for lower-cost items. If you buy equipment that costs less than €800 (net), you may be able to use an immediate full deduction instead of spreading the cost out over many years.
How to apply
- Keep all receipts and invoices for your business purchases.
- Maintain detailed records of when the equipment was bought and its intended use.
- Follow the official depreciation rules when filing your tax returns.
- Consult with a tax professional to ensure your bookkeeping meets official requirements.