Expenses and Tax Deductions
Expenses and Tax Deductions While OPEX can be tax-deducted in same, CAPEX must be depreciated over a period of years of the useful life of the asset
Definition: The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. Machinery, equipment, currency are some examples of assets that are likely to depreciate over a specific period of time.
Expenses and Tax Deductions While OPEX can be tax-deducted in same, CAPEX must be depreciated over a period of years of the useful life of the asset