This module introduces the fundamentals of tax depreciation, including the general requirements for depreciable property and which assets qualify for cost recovery. Participants receive a high-level overview of how depreciation is calculated under MACRS, including differing depreciable lives and a brief introduction to amortization. The module also introduces Section 179 expensing and bonus depreciation, focusing on when these provisions may apply and how they differ from regular depreciation. Through guided discussion and fact patterns, participants explore how to evaluate whether assets qualify for Section 179 or bonus depreciation and which treatment may be more appropriate. The module concludes with an overview of special rules and limitations related to automobile depreciation.