Accumulated depreciation is the sum of an asset’s depreciation expense. It’s calculated from the start of its use to a specific date. It’s also a contra-asset account. That means it decreases the ...

Depreciation expense can be a big portion of a company’s total expense. And since expenses decrease income, it affects the overall value of a company. Understanding what it is and the methods can help ...

For tax purposes, depreciation reflects the recognition that certain assets, particularly company equipment, tend to lose value over time. The Internal Revenue Service generally allows you to ...

If you take a bite into an apple and let it sit, over time, the bite mark will begin to brown. That browning is a lot like "depreciation." Depreciation in accounting means to spread the cost of buying ...

There are dollar limits on the depreciation deductions (including deductions under the IRC §179 expensing election) that can be claimed with respect to passenger automobiles. That limit is adjusted ...

Under the Modified Accelerated Cost Recovery System, the half-year depreciation convention generally applies to personal property. Under this convention, only a half-year of depreciation is allowed ...

One of the largest deductions for farmers is depreciation, which can be misunderstood in how it works. The tax code allows you to deduct your farm purchases in three ways in the following order: ...

Recoverable depreciation is only applicable for replacement cost value (RCV) policies and allows policyholders to recoup the difference between the actual cash value (ACV) and RCV, after providing ...

Andriy Blokhin has 5+ years of professional experience in public accounting, personal investing, and as a senior auditor with Ernst & Young. Andy Smith is a Certified Financial Planner (CFP®), ...