Q My company just purchased new desks and chairs for our sales division. Can we deduct the entire cost on our 2002 return?
A No. You generally cannot deduct, in one year, the entire cost of property you purchased--either to use in your business or to produce income--if the property has a useful life substantially beyond the tax year. Instead, you can depreciate it. That is, you can spread the cost over a number of years and deduct a portion of the cost each year.
In order to depreciate property, it must meet all five of the following criteria:
1. It must be property you own.
2. It must be used in a business or other income-producing …