depreciation

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depreciation,

n the charges against earnings to write off the cost, less salvage value, of an asset over its estimated useful life. It is a bookkeeping entry and does not represent any cash outlay, nor are any funds earmarked for the purpose. There are three classic methods of applying depreciation: straight line, sum of the year's digits, and double declining balance.

depreciation

the decline in value over time of capital items.
References in periodicals archive ?
168(i)-4(d)(3)(i), taxpayers take the adjusted basis at the beginning of the change year and depreciate the property over the shorter period.
35% of its debt is foreign-currency denominated or dollar-linked -- its debt stock consequently grows as its currency, the Real, depreciates.
The landlord capitalizes the cost of the improvements and depreciates them over 39 years.
In addition, improperly classifying personal property as real property can increase the taxable value of such assets throughout their lives, since real property usually increases in value with time, while personal property usually depreciates in value over time.
The $500 deferred gain will be restored to income as B depreciates the property.