Business / Taxes / Depreciation: Certain assets, such as buildings and equipment, depreciate, or decline in value, over time. You can amortize, or write off, the cost of such an asset over its estimated useful life, thereby reducing your taxable income without reducing the cash you have on hand.

Sum-Of-The-Years-Digits (SYD) Depreciation Method

Business / Accounting / Sum-Of-The-Years-Digits (SYD) Depreciation Method: The accelerated depreciation method in which a constant balance (cost minus salvage value) is multiplied by a declining depreciation rate. MORE

Accumulated Depreciation

Business / Accounting / Accumulated Depreciation: The total depreciation recorded on an asset since its acquisition: a contra account deducted from the original cost of an asset on the balance sheet. MORE

Sum-Of-The-Years-Digits Depreciation

Business / Finance / Sum-Of-The-Years-Digits Depreciation: A method of recording accelerated depreciation. Also called the sum-of-digits method, it allows the depreciation of an asset based on an inverted scale of the total digits of the asset's useful life. MORE

Accelerated Depreciation

Business / Finance / Accelerated Depreciation: Any depreciation method that produces larger deductions for depreciation in the early years of a asset's life. Accelerated cost recovery system (ACRS), which is a depreciation schedule allowed for tax MORE

Double-Declining-Balance Depreciation Method (DDB)

Business / Finance / Double-Declining-Balance Depreciation Method (DDB): Method of accelerated depreciation. MORE

Straight-Line Depreciation

Business / Accounting / Straight-Line Depreciation: Depreciating something by the same (ie. fixed) amount every year rather than as a percentage of its previous value. Example: a vehicle initially costs $10,000. If you depreciate it at a rate of $2000 MORE