Journal entry for depreciation is an accounting procedure used to record the gradual reduction in value of a tangible asset. It’s used to track the asset’s cost basis and reduce its taxable income over a set period of time, usually a year or month. By entering depreciation into the books, businesses can accurately calculate their profits or losses. Depreciation journal entries are also useful for tracking tax breaks, such as Section 179 deductions or capital gains taxes. When used properly, journaling depreciation can help businesses save money and maximize their assets.