Depreciation deductions explained for couples

Published July 23, 2026 · 2 min read

Depreciation deductions explained for couples, with a worked example, a checklist and the mistakes to avoid.

Why this matters for couples

Couples can sometimes choose how to file or split income, and simple calculations show which option saves more.

Worked example

Here is the calculation with sample figures. Change any number in the Depreciation Tax Deduction Calculator to run your own.

Depreciation deductions: how it works

Depreciation spreads the cost of a long-lived asset over its useful life, giving a deduction each year.

Straight-line depreciation divides cost minus salvage value by the number of years.

A second example with larger figures

Scaling the inputs up shows how the result moves. Percentages stay the same, so the tax grows in proportion to the amount it is applied to.

Using the calculator step by step

1. Open the Depreciation Tax Deduction Calculator.
2. Enter your own figures on each numbered line.
3. Set the rate to the one that applies to you. Defaults are examples, not advice.
4. Read the result and the formula below it.

Key terms

Tax credit

An amount subtracted directly from the tax bill, worth its full face value.

Standard rate

The rate that applies to most goods and services unless a specific reduced rate, zero rate or exemption applies.

Effective rate

Total tax divided by total income, the average rate you actually pay.

Net amount

The amount before tax is added. On an invoice it is the figure the tax is calculated on.

Exempt supply

A sale that falls outside the tax entirely. No tax is charged and input tax usually cannot be reclaimed.

A quick checklist for couples

1. List business assets and costs.
2. Set useful lives.
3. Calculate the yearly deduction.

Common mistakes to avoid

• Deducting the full cost of a long-lived asset in one year without an election that allows it.
• Forgetting to account for depreciation when the asset is sold.

Frequently asked questions

This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.