Depreciation and amortization help investors turn their assets into tax write-offs. Savvy investors can use these costs to increase cash flow and generate higher returns on their investments.

Amortization and depreciation are accounting methods used to allocate the cost of assets over their useful lives.

Amortization: This applies to intangible assets, like patents, trademarks and goodwill. While non-physical, these assets also provide value over time. How To Calculate Depreciation: Step-by-Step ...

Instead, amortization and depreciation are used to represent the economic cost of obsolescence, wear and tear, and the natural decline in an asset's value over time. Related investing topics.

Amortization and depreciation are accounting and tax payment methods that let business owners spread the costs for major purchases and financing projects over time. Amortization and depreciation ...