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Depreciation, Cost Recovery, and Depletion’Business owners tend to mix their business expenses with their personal expenses. Explain how business owners can take advantage of leasing a vehicle used for both business and pleasure for tax purposes. Examine the rules for claiming deductions for business vehicles and recommend one method of cost-recovery that would result in the largest tax deduction for your client. Support your recommendation.Your client owns a company that invests in a significant amount of highly technical computer equipment. Assess the appropriateness of the various depreciation methods available to your client and recommend the method that produces the greatest tax benefit. Provide a rationale for your response.
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