Over time, the value of a company's capital assets decline. This is a normal phenomenon driven by wear and tear, obsolescence, and other factors. This depreciation in the asset's value must be ...

Learn how the general depreciation system (GDS) works within MACRS, its methods, tax implications, and how it accelerates asset depreciation.

Property depreciation is the gradual reduction in the value of a property over time due to factors like wear and tear, which can be used for tax deduction purposes. Property depreciation is typically ...

When a partnership is bought out, a valuation must be conducted to determine the worth of the assets to help arrive at a buyout price. One aspect of determining the value of an asset is factoring its ...

The Internal Revenue Service allows companies to recover the cost of certain types of property through a yearly tax deduction called depreciation. This tax deduction compensates businesses for the ...

Depreciation is the recovery of the cost of a physical asset, like property or equipment, over multiple years. It allows companies to spread out the cost of some expenses, reduce taxable income and ...

When teaching depreciation in Introduction to Accounting, faculty always cover a variety of different depreciation methods, including straight-line depreciation. Next time you teach this topic, build ...

Learn how rental property depreciation works and how to calculate it. It's an important factor that plays a role in maximizing deductions on your taxes.

Accounting for depreciation can be a helpful accounting trick when businesses make a major purchase. Depreciation has several different meanings, depending on the context in which it’s being used.

Depreciation is a word with so many meanings that it is all but meaningless. In asset management, depreciation must be defined carefully each time it is used, and there must be a full understanding of ...

Depreciation recapture taxes gains from selling depreciated property as ordinary income, reclaiming prior tax benefits. If you’re a business owner, you’ve probably bought at least some property to use ...