A fixed asset that is subject to depreciation to account for its loss in value over time. Depreciation is a systematic process of expensing the cost of tangible assets over their useful lives.
Depreciable Life refers to the period over which the cost of an asset is spread for tax purposes, or the estimated useful life of an asset for appraisal purposes.
Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life. It is used to account for declines in value as assets age and wear out.
Depreciation is an accounting method that allocates the cost of a tangible asset over its useful life.
Physical depreciation or deterioration refers to the loss of value from all causes of age and action of the elements. It encompasses breakage, deferred maintenance, effects of aging on construction materials, and normal wear and tear.
Physical life refers to the expected duration an asset, such as real estate improvements, can exist physically. It contrasts with useful life, which considers the period the asset remains functional and economically viable in its usage.
The straight-line method of depreciation is a calculation method whereby an equal amount of an asset's cost is allocated as an expense for each year of the asset's useful life. This method is commonly used for accounting and tax purposes.
The useful economic life, or useful life, is the period for which the present owner of an asset will derive economic benefits from its use.
Useful life refers to the period of time over which a depreciable asset is expected to provide a competitive return or service. The Modified Accelerated Cost Recovery System (MACRS) allows depreciable lives for tax deduction purposes that may differ from the useful life of the property.
