$10,000 owed in fed and state tax too much?

Depreciation, for federal income tax purposes, is 'allowed or allowable'. It is not optional and is deemed to have been taken whether you deducted it, or not. Because it is a non-economic expense, meaning you didn't spend the cash that is taken as a depreciation expense, accountants, lenders and financial advisors disregard the figure in respect of borrowing ability.