[Always Right]

I know that we don't write a check for depreciation. We do put it on our books and have to come up with that much income, or else we are loosing money.

But even without the IRS, accountants will still depreciate. Unless you are a self-owned business, you need to track costs so you can share profits. If you just expensed out the $50,000 car in year one, you would not have an accurate picture of how your business is doing. Some depreciation is more of a tax trick, but mostly it is good accounting practice so you know the value of your business.

[phil_will1]

"But even without the IRS, accountants will still depreciate."

True, but they will only have to keep track of one set of depreciation numbers, not two. There will no longer be separate calculations for tax depreciation and book depreciation when the FairTax passes.

:-)