 Makers' depreciation. How is the depreciation deduction figured? Part number two. Let's do some wealth preservation with some tax preparation. Most of this information comes from publication 946, How to Depreciate Property Tax Year 2022. You can find on the IRS website irs.gov, irs.gov. We've got the income tax formula. We're focused on line one income. Remember, in the first half of the income tax formula is in essence an income statement, but just an outline of other forms and schedules flowing into these line items. One of those, the Schedule C, having business income minus business expenses. The net business income from the Schedule C flowing into line one income of the income tax equation. First page of the form 1040, noting that the Schedule C generally rules into the Schedule 1, generally rules into the first page of form 1040.