Accumulated depreciation is the total amount of depreciation you've claimed on an asset since you first placed it in service. It includes depreciation from prior years plus any depreciation claimed for the current tax year.
As depreciation is claimed each year, the asset's tax basis is reduced. In other words, accumulated depreciation represents the portion of the asset's cost that has already been written off for tax purposes.
How Do I Find My Accumulated Depreciation?
To calculate your accumulated depreciation for the current year, start with the total accumulated depreciation reported at the end of last year. Then add any depreciation claimed during the current tax year.
You can usually find this information on:
- Prior-year Form 4562, Depreciation and Amortization
- Your depreciation schedule
- Asset worksheets or supporting tax records
Review your records to find the running total depreciation for the asset. That combined amount is your accumulated depreciation to date.