Sep 4, 2025 · Depreciation is an accounting method that allocates the cost of a tangible asset over its useful life to reflect its decreasing value through use and obsolescence.

Introduction This publication explains how you can recover the cost of business or income-producing property through deductions for depreciation (for example, the special depreciation allowance and …

Depreciation is thus the decrease in the value of assets and the method used to reallocate, or "write down" the cost of a tangible asset (such as equipment) over its useful life span. Businesses …

Jun 16, 2023 · Depreciation is an accounting method that spreads the cost of an asset over its expected useful life to give you a more accurate view of its value and your business’s profitability.

Depreciation is associated with buildings, equipment, vehicles, and other physical assets which will last for more than a year but will not last forever. Depreciation is necessary for measuring a company’s …

Aug 14, 2024 · Depreciation in accounting and bookkeeping is the process of allocating the cost of a fixed asset over the useful life of the asset. The cost of the asset should be deducted over the same …

Below is the summary of all four depreciation methods from the examples above. Here is a graph showing the book value of an asset over time with each different method.

Nov 26, 2025 · Depreciation is a planned, gradual reduction in the recorded value of an asset over its useful life by charging it to expense, usually over multiple years.

depreciation, in accounting, the allocation of the cost of an asset over its economic life. Depreciation covers deterioration from use, age, and exposure to the elements.

Instantly calculate asset depreciation with Xero's free tool. Get accurate straight-line and reduce balance figures for your tax returns.