useful life

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Useful life

The expected period of time during which a depreciating asset will be productive.

Useful Life

The amount of time, as determined by the IRS, that an asset is expected to be used. The useful life is important in determining taxes assessed on the depreciated value of the asset each year. Theoretically, an asset's useful life is equal to its absolute physical life, but, because the useful life is an estimation, this is not always the case.

useful life

(1) In accounting and taxation,the time period over which an asset is depreciated.(2) In appraisal,the time period during which one can expect a positive cash flow from a property.

References in periodicals archive ?
The age of the electrical equipment at the water towers has exceeded or is approaching the end of its useful life.
It would be difficult to establish a useful life for valued and treasured pieces of art that were already hundreds of years old.
Total cost of ownership represents all of the costs to own and operate a piece of equipment over its useful life.
31, 2005, is based on such inputs as the average cost of military equipment, total program expenditures, and the useful life of the equipment.
As under the current regulations, costs incurred to acquire or produce real or tangible personal property having a useful life substantially beyond the end of the taxable year must be capitalized.
After the cartridges are refilled to the end of their useful life, OfficeMax will take them to recyclers who break down the materials without filling up another landfill.
Description of industry trends and competitive pressures that may affect the useful life of the know-how.
new technical requirements and procedures for assessing the in-service conformity of heavy-duty engine emission control systems over defined useful life periods appropriate for the vehicle in which the engine is installed; and
Generally Accepted Accounting Principles characterize a capital cost as an expenditure that has a useful life greater than one year, is material in value and extends the useful life of the asset or increases its value.
The useful life of a tape cartridge is expressed in terms of full file passes and differs by technology platform.
A building's system is said to be past its useful life when it has failed (the roof is leaking) or when it is in such a deteriorated condition that failure is imminent (the HVAC controls are not expected to last through the year).
The therapeutically useful life of the Tempur-Med mattress is guaranteed for 7 years.