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Related to depreciating: deprecating, Depreciating asset


To allocate the purchase cost of an asset over its life.


The gradual reduction of an asset's value. It is an expense, but because it is non-cash, it is often effectively a tax write-off; that is, a person or company usually may reduce his/her/its taxable income by the amount of the depreciation on the asset. Because there are many different ways to account depreciation, it often bears only a rough resemblance to the asset's useful life. This may further benefit the company as they may continue to use the asset tax-free after its value has technically depreciated to nothing. See also: Amortization.


To reduce the value of a long-term tangible asset.
References in periodicals archive ?
The depreciating license exchange can be approximated using a "foothold auction" system.
The similarities between like-kind and section 351 exchanges suggest that guidance for depreciating property in the former may also be applied to the latter.
They have no problem identifying these costs and depreciating them as personal property.
Such customers can terminate their patronage at will, depreciating the customer lists' value.
In 1999, NGS filed amended returns for its 1994-1996 tax years, stating that it was opting to elect out of MACRS, instead depreciating its rented gaming equipment using a method "not expressed in terms of years" under Sec.
However, depreciating the property according to Notice 2000-4 accelerates depreciation over that allowed for newly purchased MACRS property.
731, the taxpayer "stepped into the shoes" of the partnership, to the extent of the partnership's basis in the property at the time of the distribution, and continued depreciating the property as if the property had not been distributed.
197, added by the Omnibus Budget Reconciliation Act of 1993, provides a method for depreciating and amortizing certain intangible assets, called "Sec.
Accordingly, the income forecast method is an allowable method of depreciating such assets.
Because the excess can be carried over, the tax savings will be greater than depreciating the asset over its useful life.
What would prevent an automotive repair shop from depreciating its spare parts?
seeking to "modify the per se ban on depreciating goodwill.