by 
Anonymous
ANSWERS: 2
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My understanding is if depreciation is undrstated your net income would be increased by the like amount that you would have saved on taxes had you written off what you were entitled to - I think. You would not have made more but you wold have paid less taxes on what you did show as earnings. +5
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Dumdum did a good job of answering this question and there is one 'catch' to understating depreciation. When you go to sell the depreciated item, there is a depreciation recapture that is on depreciated allowed or allowable! So, if you have NOT claimed all the deprecation you could by understatment, you will still pay taxes on what should have been claimed, not just what was claimed!
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