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 ?
However, timeshare properties can be, for many, a depreciating asset as historically more timeshares have appeared in the same vicinity and therefore there has been more supply with less demand, which typically pushes the prices down.
All well and good - but when the Mirror compiled its own list of best and worst depreciating cars last year our findings generally coincided with the views of both CAP and Glass's.
He does not believe such as issue will carry much weight in a British court but says his firm would be happy to undertake a test case for performers whose assets are depreciating.
However, before the final regulations are issued, the IRS will allow "any reasonable method" of depreciating the property to be used in the change year and subsequent tax years, as long as the method is consistently applied.
They mistakenly capitalize these costs into the project basis and depreciate them over 39 years instead of allocating them to their true asset class lives and depreciating them over 5, 7, or 15 years.
Section 167(a) implies that "property" includes both tangible and intangible assets, but the regulations contain restrictive language on depreciating intangibles.
NGS), TC Memo 2001-277, the Tax Court held that a corporation failed to properly opt out of depreciating its rental game equipment under the modified accelerated cost recovery system (MACRS).
This approach can have a particularly harsh, result, because X would effectively be depreciating a portion of the basis (approximately $11,700,000 of the warehouse's original cost) over 52 years (39 + 13) rather than 31.
1033 involuntary conversion have new guidance for depreciating the acquired property under Sec.
Little satisfaction is gained from depreciating commercial real estate over 39 years; however, taxpayers acquiring such property may be able to get a greater tax advantage by depreciating some parts of their purchase over a much shorter period.