What Happens to Capital Goods That are Not Used in a Single Year of Production ?

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  • Capital goods that a business does not use up in a single year of production cannot be entirely deducted as business expenses in the year they are purchased.
  • Instead, they must be depreciated over their useful lives, meaning that the business takes a partial tax deduction for the item for each year that the capital good is in use.

Read more:

  1. What are Capital goods ?
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