depreciate

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Related to depreciating: deprecating, Depreciating asset

Depreciate

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

Depreciation

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.

depreciate

To reduce the value of a long-term tangible asset.
References in periodicals archive ?
Depreciating licenses can be described in several equivalent ways.
All well and good - but when the Mirror compiled its own list of best and worst depreciating cars last year our findings generally coincided with the views of both CAP and Glass's.
The reality is it's hard to avoid not buying any depreciating assets because many of them are essential to our survival.
They have no problem identifying these costs and depreciating them as personal property.
Section 167(a) implies that "property" includes both tangible and intangible assets, but the regulations contain restrictive language on depreciating intangibles.
(NGS), TC Memo 2001-277, the Tax Court held that a corporation failed to properly opt out of depreciating its rental game equipment under the modified accelerated cost recovery system (MACRS).
This approach can have a particularly harsh, result, because X would effectively be depreciating a portion of the basis (approximately $11,700,000 of the warehouse's original cost) over 52 years (39 + 13) rather than 31.5, an additional 20.5 years.
1033 involuntary conversion have new guidance for depreciating the acquired property under Sec.
Little satisfaction is gained from depreciating commercial real estate over 39 years; however, taxpayers acquiring such property may be able to get a greater tax advantage by depreciating some parts of their purchase over a much shorter period.
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.