Depreciation

I am happy that i managed to understand why depreciation is a return of capital (note this is not a return on capital). Please do tell if you disagree.

1. Why depreciation is a return of capital?
1. Depreciation helps to reduce the profit you received, thus less taxed on the net income
2. This helps to decrease the value investment you have put in the plants and equipments.
3. This is subtle but interesting