Accelerated Depreciation
Definition
A depreciation method which allows faster write-offs than the straight line method. These methods provide a greater tax shield effect than straight line depreciation, and so companies with large tax burdens might like to use accelerated depreciation methods, even if it reduces the income shown on financial statement. Accelerated depreciation methods are popular for writing-off equipment that might be replaced before the end of its useful life since the equipment might be obsolete (e.g. computers). One example of an accelerated depreciation method is the Modified Accelerated Cost Recovery System (MACRS).
 Cite this definition
Related Terms
double-declining balance depreciation method
'Accelerated Depreciation
' appears in the definitions of these terms on BusinessDictionary.com
accelerated cost recovery system (ACRS), double declining-balance depreciation, sum of the years digits (SYD) depreciation, limited partnership
Related Research Articles from the InvestorGuide.com University
Filing Your TaxesDetails on when and how to file your tax return. Describes often used tax return terminology and processes, including electronic filing, estimated payments, withholding, and alternate minimum tax (AMT). 
Taxes and Your InvestmentsLearn how taxes should affect your investment strategy. Understand how gains from stocks, mutual funds, bonds, lottery winnings, and other sources are taxed differently. Topics include short-term and long-term capital gains, the wash sale rule, investment interest, stock splits, and active trading.
Taxes and Your RetirementIt's always a good idea to plan for the future. Learn about the taxes associated with social security, pensions, annuities, 401(k) plans, and IRAs.
Featured Sponsor
|
