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 ?
"Excluding the share in one-time loss of P334 million for the accelerated depreciation of Calaca Units 1 and 2 in 2018 and the net effect of the share in non-recurring items in 2019, namely, the accelerated depreciation of Calaca Units 1 and 2 (P187 million) one time-loss on a financial contract of Southwest Luzon Power Generation Corp.
In fiscal year 2019, Post management expects to incur $19-$21 million of restructuring and facility closure costs associated with the closure of certain cereal facilities, which are treated as adjustments to non-GAAP measures and comprised of severance, retention and related expenses, adjustments on assets held for sale and accelerated depreciation. Post management continues to expect fiscal year 2019 capital expenditures to range between $300-$310 million, including the following:
But now a trading update from Sage, covering the nine months ended June 30, reveals the huge extra costs to the business that this move will trigger, resulting in a on-off charge of around PS60m related to the accelerated depreciation of the building, taking the total cost of the imminent move to PS100m.
But now a trading update from Sage, covering the nine months ended June 30, reveals the huge extra costs to the business the move will trigger, resulting in a one-off charge of around PS60m related to the accelerated depreciation of the building, taking the total cost of the imminent move to PS100m.
A P91 million non-recurring item was booked in the first quarter to reflect the accelerated depreciation of Calaca units 1 and 2 while the one-time losses in the first quarter of 2018 priced in the accelerated depreciation of Calaca Units 1 and 2 (P167 million) and one-time refinancing costs of Maynilad (P72 million).
Jim Inhofe (R-Okla.) ahead of Tax Day, introduced two bills that will revive and make permanent expired tax provisions, the Indian Lands Accelerated Depreciation provision and the Suspension of Net Income Limitation for Percentage Depletion for Marginal Wells provision.
Using accelerated depreciation reduces taxable income, which in turn reduces the QBI deduction, so tax projections should be run both with and without accelerated depreciation methods.This tax season was more of a mixed bag for individuals.
The P38 million nonrecurring income is attributable to a P715-million gain on the sale of land by DMCI Homes and a P679-million share in accelerated depreciation of Sem-Calaca Power.
The P38 million non-recurring income is attributable to a P715 million gain on sale of land by DMCI Homes and P679 million share in accelerated depreciation of Sem-Calaca Power Corporation.
The above guidance excludes any additional acquisitions, any results of discontinued operations, amortization of intangibles, accelerated depreciation, any potential restructuring, integration, and other expenses and certain income tax adjustments including certain impacts of the recent tax law changes in the U.S.
(16) Generally, the code provides for two basic depreciation schemes: 1) an accelerated depreciation system; (17) and 2) a straight-line depreciation system (referred to as the "alternative depreciation system").
The solar panels, by Solar Energy World in Elkridge, Maryland, will provide some 5-8 percent of the bank's electricity needs and will create approximately 50 Solar Renewable Energy Credits (SRECs) annually that will generate savings and will result in savings from tax credits and accelerated depreciation.

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