Depreciation is a tax deduction that lets businesses recover the cost of long-term assets over time, such as equipment, machinery, vehicles, or buildings. Instead of deducting the full cost in the year you buy it, depreciation spreads the deduction across the asset’s useful life.
This reflects how the item wears down or loses value over time. Some rules (like Section 179 or bonus depreciation) may allow you to deduct more upfront.
Depreciation helps lower taxable income each year and supports long-term business investment.
For more information click in this link: IRS.gov