depreciation


Also found in: Dictionary, Thesaurus, Legal, Financial, Acronyms, Encyclopedia, Wikipedia.
Related to depreciation: depreciation methods, Accumulated Depreciation, straight line depreciation

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 ?
179 expense deduction, next the bonus depreciation deduction, and then the regular depreciation deduction.
For example, if a taxpayer purchased $1,000,000 of equipment (5 year MACRS recovery life, subject to the half year convention) on September 1, 2010, that is eligible for a [section]179 deduction and is also eligible for the bonus depreciation.
7) Because the apartment building generated minimal rental income over that period, only $3,307 of the $28,000 of allowable depreciation deductions actually produced any tax benefits for Beulah.
The new tax law also deals with depreciation to be allowed in respect of assets which are taken on lease or purchased on a hire purchase basis.
To calculate depreciation for year 1, specify a start period of 0 and an end period of 1.
It depicts how depreciation using the cost segregation method increased this owner's depreciation by $223,715 over five years, with nearly $45,000 more in the first year.
New ways of looking at asset costs and depreciation.
This year's law increases the bonus depreciation rate to 50 percent for qualifying property acquired after May 5, 2003, and placed in service before Jan.
Generally, money spent on business equipment must be deducted over several years through depreciation.
When the subject asset is not new, the current cost must be adjusted for all forms of depreciation as of the effective date of the appraisal.