Tax Analysts provides news, analysis, and commentary on basis deductions including depreciation, amortization, and depletion. These three concepts address and define how taxpayers can deduct capitalized expenditures over time.

Depreciation of capitalized expenditures (along with increase in basis) is the converse concept to immediate deduction of expenses. Section 167 allows a depreciation deduction over time for investments in income producing property or for property used in a trade or business. A taxpayer may deduct a portion of the value of the property over the course of the useful life of the property, due to wear and tear, exhaustion, and obsolescence. Depreciation deductions reduce the property's basis. At the end of the useful life, the basis remaining should equal the salvage value. Amortization under section 197 is the equivalent concept for intangible property.

Many current political business promotion ideas involve accelerated depreciation or bonus depreciation under section 168 or section 179. The intent is to shorten useful life, accelerate deductions and allow businesses to depreciate or amortize property more quickly, and thereby stimulate investment and expansion.

Depletion, under section 611, is a similar concept applied to natural resource rights such as mining, timber, and petroleum (oil, coal, and natural gas). A taxpayer's depletion deduction for the year is the greater of the cost depletion (under section 612) or the percentage depletion (under section 613). While cost depletion is similar to depreciation and amortization, percentage depletion is instead based on a percentage of gross income from the applicable property.

Tax Analysts provides guidance on depreciation, amortization, and depletion in the form of news stories, documents, and commentary.