Definitions for "Straight-line Depreciation"
Related Terms:
Accelerated depreciation, Straight-line method, Straight line depreciation, Accumulated depreciation, Declining balance depreciation, Ebitda, Depreciation, Straight-line depreciation method, Capitalize, Capital cost allowance, Cost recovery, Depreciation expense, Capital allowances, Adjusted basis, Capital expenditures, Cca, Net book value, Write-off, Earnings before interest, taxes, depreciation and amortization, Capital expenditure, Nopat, Modified accelerated cost recovery system, Net cash flow, Depreciation recapture, Recapture, Capital employed, Accelerated cost recovery system, Economic value added, Net investment, Net capitalized cost, Tax basis, Basis, Operating profit, Net profit, Capital cost, Gross investment, Estimated useful life, Cost basis, Amount realized, Net income, Original basis, Macrs, Earnings before interest and taxes, Useful life, Net worth, Total liabilities, Operating income, Profit, Net loss, Eva
A method of depreciation, which takes the depreciable cost of an asset and divides it by the asset's useful life to determine the annual depreciation expense. Other forms of depreciation include sum of the years digits and double declining balance.
A method of depreciation in which an equal amount of depreciation is taken annually over an asset's economic life.
An accounting procedure that sets the rate of depreciation as a fixed percentage of the amount to be depreciated; the percentage stays the same each year. Back to the Top
Amortizing or apportioning an equal dollar amount of depreciation in each accounting period.
An accounting procedure for apportioning a corporation's cost of a qualified asset over its useful lifetime in equal annual increments. The annual figure accordingly lowers the company's taxable income.
A method of depreciation whereby an equal amount is deducted each year over the life of the asset.
A method of depreciation that yields lesser amounts of depreciation deductions in the earlier years of recovery. The modern Cost Recovery methods, applicable to most business assets, yield higher deductions in the early life of the asset.
A method of depreciation (for financial reporting and tax purposes) in which the owner of the equipment claims an equal amount of depreciation in each year of the equipment's recovery period.
A depreciation method that allows the owner to write off an asset’s basis in equal amounts over its useful life. For example, if an asset were to have a 10-year useful life, the straight-line depreciation allowance each year would be 10 percent of the basis. Note that in the tax code as of this writing there exists a so-called half-month convention for real estate, where the taxpayer is allowed only one-half month depreciation in the month of acquisition and one-half month in the month of resale.
Depreciation calculation whereby an equipment owner takes an equal amount of depreciation in each year of the equipment's useful life (for tax purposes called the recovery period).
A method of depreciating a fixed asset other than land by dividing the asset’s useful life into the total cost of the asset minus any value that it may have at the end of its useful life. The resulting amount is a uniform annual depreciation expense that is subtracted from income.
Accounting method that reflects an equal amount of wear and tear during each period of an asset's useful life. For instance, the annual straignt-line depreciation of a $2,500 asset expected to last five years is $500. (See Accelerated Depreciation.)
Depreciating something by the same (ie. fixed) amount every year rather than as a percentage of its previous value. Example: a vehicle initially costs $10,000. If you depreciate it at a rate of $2000 a year, it will depreciate to zero in exactly 5 years. See Depreciation .
TRA '86 applied to all improved investment properties put into service after January 1, 1987; 27.5 years for residential income and 31.5 years for commercial properties.
Taking depreciation expense on an asset in equal segments. For example, a $10,000 asset depreciated over five years would be expensed at $2,000 per year. See also accelerated depreciation.
A method of depreciation that charges equal amounts of depreciation to the Profit & Loss Account during the useful life of an asset.
An accounting method in which a depreciable asset is depreciated by a like amount each year over a specified period of time.
A depreciation method that allows equal deductions in each year of an asset's "life" or recovery period. (See "Accelerated depreciation.")
Straight-Line Depreciation is a method for calculating the yearly amount of Depreciation for an item. Yearly Straight-Line Depreciation is the original purchase price of the item divided by the number of years that the business expects to use the item; ac
A method of calculating depreciation in which the same amount is deducted each year until the full value has been deducted.
a method of depreciation which provides for equal amounts of depreciation being taken each period. This method is typically used for financial rather than tax purposes.
Equal annual reductions in the book value of property. It is used in accounting for replacement and tax purposes. The depreciation method where an equal amount of depreciation expense is allocated to each full period of the asset's useful life.
In accounting or taxation, straight-line depreciation of an asset is a depreciation method where equal amounts of depreciation expense will be taken in each year of the asset's useful life. Although it may not provide the most realistic assessment of the asset's value over time, this method has the advantage of simplicity.