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Why is my book depreciation different from my tax depreciation?

Financial reporting & forecasting

Because they answer different questions. Book depreciation spreads cost in a way that reflects how the asset is used; tax depreciation follows MACRS recovery periods set by statute.

The gap is expected and gets reconciled on the return. A difference is not an error.

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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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