accelerated depreciation


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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

a DEPRECIATION method which charges a higher proportion of the HISTORIC COST of an ASSET against profits during the early years of its life than is charged in the later years of its life, for example the reducing balance method of depreciation. It is often argued that an accelerated depreciation method is more appropriate since it levies higher depreciation charges in the early years of an asset's life when maintenance and repair charges are modest, while charging less for depreciation in the later years of the asset's life when maintenance and repair charges are higher.

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.
References in periodicals archive ?
Building and equipment accelerated depreciation related to San Jose and Dallas manufacturing facilities.
A cost segregation study can provide purchasers with significant tax benefits such as accelerated depreciation resulting in an immediate increase in cash flow due to a reduction in current tax liability.
accelerated depreciation and tax holiday, generation- based incentive and facility for bundled power for grid- connected solar power," he said, adding there are projects through various interventions announced from time to time.
Credit conditions: loan with fixed interest rate over 20 years with accelerated depreciation.
It also contains an accelerated depreciation schedule, which calls for an 8 percent depreciation from year two to eleven and then the depreciation drops to 1 percent for the remaining nine years.
The one year extension of the cellulosic producer tax credit and accelerated depreciation provides some measure of certainty to ensure that 2014 will be a year of growth and milestones for the advanced ethanol industry," said Bob Dinneen, president and CEO of the Renewable Fuels Association, in a statement.
Accelerated depreciation is a tax break for companies that invest in certain assets.
If a change in use results in a shorter recovery period and/or a depreciation method that is more accelerated than the method used before the change in use, the taxpayer has two options: (1) The taxpayer can compute the depreciation allowance using the shorter and/or more accelerated depreciation method in the year the change in use occurred, or (2) the taxpayer may elect to continue determining the depreciation allowance as though the change in use had not occurred.
Farms built from April 1 are only able to claim so-called accelerated depreciation at 15 per cent of the cost of equipment, down from 80 percent, according to a circular on the website of the Indian tax authority.
their effects with regard to retaining accelerated depreciation or expensing.
34 percent expect any tax rate reduction to be offset by reducing or eliminating three key corporate tax provisions: domestic manufacturing deduction, accelerated depreciation and use of foreign tax credits.
Reinstatement of accelerated depreciation, especially as written in H.

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