This blog describes how accelerated depreciation can prove beneficial for a business along with its some disadvantages. It is one of the methods of depreciation that allows the business owner to eliminate a higher depreciation percentage in exchange of lower future depreciation rate. Here, the business can gain benefits by using this method in terms of reduced deductions in start-up, allowing tax deferrals, and by taking large upfront deductions. The main disadvantage of this depreciation method is that it can become an obstacle in the path of growing business, along with being termed as a clear preference and posing a risk of recaptured depreciation. The blog describes each of these points in an elaborated manner.
