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In Europe taxes accept a depreciation of 15 years for industrial installations and very heavy (stationary) machines. For heavy machines (like tractors) it is 10 years. For equipment and tools (the category we are speaking about here) it is 5 years and for computers and peripherals it is 3 years. You won't have to calculate the ROI in order to make a good calculation of your burden for taxes. You can simply use the depreciation of your equipment as a cost post.
Example: you buy a preamp for 1500.-. After 5 years it will have some value left, so that will have to be deducted from the amount to depreciate. Let's say it will sell for 300.- after five years. That leaves 1200.- of depreciation costs to spread out over 5 years, being 240.- that you can deduct from your gross income each year. (Just for the preamp of course.)
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