accumulated depreciation

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Accumulated Depreciation

The total depreciation on an asset, and not simply the depreciation that is added each year. One may calculate the accumulated depreciation by subtracting the original value of the asset from its current book value or by multiplying the yearly depreciation by the number of years the asset has been held.

accumulated depreciation

The total amount of depreciation that has been recorded for an asset since its date of acquisition. For example, a computer with a 5-year estimated life that was purchased for $2,000 would have accumulated depreciation of $800 [( $2,000/5 ) × 2] and a book value of $1,200 ($2,000 - $800) after 2 years of straight-line depreciation. Also called depreciation reserve.

accumulated depreciation

Also called accrued depreciation.

References in periodicals archive ?
110-289, that allowed certain corporations to elect to forgo bonus depreciation allowances in exchange for the opportunity to effectively monetize (in the form of a refundable tax credit) a portion of their unused alternative minimum tax (AMT) credits or research tax credits generated prior to 2006.
After Hiatt conducted a cost segregation study to take advantage of available accelerated tax depreciation allowances, he helped the firm sort through the options to help finance the solar project through tax incentives, tax credits, utility company rebate programs and power purchase agreements.
Under current law, the expanded expensing and accelerated first-year depreciation allowances are considered tax expenditures and are candidates for reform.
The report goes on to argue the case for reducing Corporation Tax for manufacturing companies that increase prosperity in the UK, for offering enhanced depreciation allowances to firms that invest in the manufacturing sector, and for rewarding any new manufacturing job creation with a national insurance holiday.
Under the current tax law, the depreciation allowances are 0.
To work out the NPV of the cost to buy, we need to calculate the tax savings on tax depreciation allowances (see table 1).
It should be noted that the depreciation treatment of the replacement MACRS property by previous owners as well as elections made by them have no effect on determining depreciation allowances for the replacement property in the hands of the acquiring taxpayer.
5140, the Economic Stimulus Act of 2008, Public Law 110-185 (which grant temporary increases in the expensing and depreciation allowances for certain capital assets put into service during 2008) for purposes of calculating Florida taxable income.
In most cases, he pointed out that projects involving significant capital expenditure do not generate taxable profits in the initial years in view of the significant accelerated tax depreciation allowances.
The paper is structured as follows: Section II discusses depreciation allowances for natural environment.
Supported by more than 200 court cases, Treasury regulations, and IRS revenue rulings, the time-tested methodology of cost segregation is a generally accepted tool available to substantially reduce income taxes by increasing depreciation allowances.
Figures in December were high because the month marked the end of bonus depreciation allowances, noted Ralph Nappi, president of AMTDA, one of the two organizations that conduct the survey.