Depreciation & Amortization: Turning Time into Tax Savings

Neerja Kwatra
Oct 29, 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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