Which assets are depreciable?

Examples of depreciable assets include office equipment such as fax machines and copiers, furniture such as a desk or chair, and manufacturing equipment such as a bakery oven. Vehicles and buildings are also depreciable; in fact, most tangible personal property acquired for use in a business can be depreciated. "Tangible personal property" refers to movable items you can see or touch. Depreciable items must have a period of usefulness that exceeds one year, benefiting the business over time.

Additions and improvements that increase the value of an asset are sometimes depreciable, although ordinary maintenance and repairs are not. Check with an accountant about depreciation of additional costs.