Depreciation reduces asset values, enabling companies to decrease reported earnings and taxes. Several depreciation methods exist, reflecting how assets lose value over time or usage. Understanding ...

The straight-line method depreciates an asset on the assumption that the asset will lose the same amount of value for the duration of its service life. The straight-line method requires you to ...

Assets like equipment, vehicles and furniture lose value as they age. Parts wear out and pieces break, eventually requiring repair or replacement. Depreciation helps companies account for the ...

Accelerated depreciation allows businesses to write off the cost of an asset more quickly than the traditional straight-line method. This can provide asset owners with potentially valuable tax ...

American Journal of Agricultural Economics, Vol. 77, No. 1 (Feb., 1995), pp. 194-204 (11 pages) A flexible functional form model is used to estimate remaining-value equations for eleven major types of ...

Lea Uradu, J.D., is a Maryland state registered tax preparer, state-certified notary public, certified VITA tax preparer, IRS annual filing season program participant, and tax writer. Ryan Eichler ...

The sinking fund method is one of several advanced methods of depreciation that are more complex than the familiar straight-line and declining-balance methods. The method is seldom used, because it's ...

Depreciation recapture is the process by which the IRS reclaims tax benefits previously obtained through depreciation when an investor sells a depreciable asset for more than its depreciated value.