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Which depreciation method should I use?

Bookkeeping & accounting basics

For tax, MACRS is generally required, and the recovery period follows the asset class rather than your judgment.

For your books you can use a method that reflects reality, straight line for most things, declining balance for assets that lose value fast. Book and tax depreciation differing is normal.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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