accelerated depreciation financial definition of accelerated depreciation. accelerated depreciation finance term by the Free Online Dictionary.

Accelerated depreciation

Any depreciation method that produces larger deductions for depreciation in the early years of an asset's life. Accelerated cost recovery system (ACRS), which is a depreciation schedule allowed for tax purposes, is one such example.

Accelerated Depreciation

Any of several systems of increasing the depreciation on an asset. Increasing the depreciation allows the asset's owner to write off more of the value of the asset, at least for some of the years of ownership. This can reduce the owner's tax liability. A common method of accelerated depreciation is the Modified Accelerated Cost Recovery System, which estimates depreciation in a way that bears only a rough relationship to an asset's actual life; it was designed to decrease the taxation in the early years of an asset's ownership.

accelerated depreciation

An Accelerated Cost Recovery System method for writing off the cost of a capital asset by taking the largest deductions in the early years of the asset's life. The purpose of using accelerated depreciation is to delay the payment of taxes so that cash savings from the deferral can be reinvested to earn additional income. Compare straight-line depreciation.

accelerated depreciation

Depreciation methods that allow larger deductions in early years,trailing off to smaller deductions in later years. It is the opposite of straight-line depreciation, in which equal amounts are depreciated every year.Accelerated depreciation is not allowed for real property, but may be employed for certain components,such as fencing,security systems,carpet,or windows. The most common types of accelerated depreciation encountered in real estate are double declining balance, also called 200 percent declining balance, and the alternative 150 percent declining balance method.

Example: Carpeting in residential rental properties may be depreciated over 5 years.

Assuming $10,000 worth of carpeting is installed in an apartment building, this is each year's depreciation using the different methods:

Accelerated Depreciation

Various methods of depreciation that yield larger deductions in the earlier years of the life of an asset than does the straight-line method. The double (or 200 percent) declining balance method is an example of an accelerated depreciation method.

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Amortizacion acelerada
Deferred Income Tax
depreciation
depreciation recapture
double declining balance
Double-Declining-Balance Depreciation
Double-Declining-Balance Depreciation Method
Flow-through method
Kasoku Shoukyaku
recapture
recapture of depreciation
straight-line depreciation
Sum-of-the-years'-digits depreciation
Tax Deferral
Tax Equity And Fiscal Responsibility Act of 1982
TEFRA

Accelerated depreciation for HVAC equipment with a bump up for "higher" efficiency systems may encourage property owners to replace older, less efficient systems that use more energy and rely on environmentally toxic refrigerants that are being phased out of production.

Building efficiency tax incentives by Units

Reinstatement of accelerated depreciation, especially as written in H.

Congress asked to renew depreciation schedule by Printed Circuit Design & Fab

To improve such conditions, Congress in 1993 created Indian reservation depreciation (IRD), a tax expenditure offering accelerated depreciation for property invested on Indian reservations.

Tax Expenditures: Available Data Are Insufficient to Determine the ... by General Accounting Office Reports & Testimony

Abu Dhabi Fund for Arab Economic Development

Abusive Tax Shelter