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The Depreciation Act determines the rules on depreciation of operating assets
When you write off an asset, you write down its value. Assets must be depreciated so that the book value matches the real value. In practice, this means that a depreciation is an accounting entry of an asset that depreciates over its useful life.
The ongoing loss of value of the assets, i.e. operating assets, is an actual expense for the company, which the company must pay from its profits. The expense can be deducted from the company's earnings when the tax is to be calculated, via the amortization of the loss.
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