There are many reasons a profitable business doesn’t show as much profit on the tax returns as the business actually generates, one of those reasons that will be highlighted here is depreciation. Depreciation is a ‘non-cash’ expense recorded on a tax return that reduces the taxable profit of a business.  Depreciation is a write off associated with the capital expenditure on tangible assets.  Tangible assets would be physical equipment used to conduct business including what is … Read entire article »