Economic depreciation can often occur with real estate. In periods of economic downturn or a general housing market decline, economic depreciation may lead to a decrease in market value.

Depreciation allows a business to allocate the cost of a tangible asset over its useful life for accounting and tax purposes. Here are the different depreciation methods and how they work.

The annual and monthly depreciation expenses for the vehicle using the straight-line depreciation method would be: ($260,000 – $20,000) / 8 = $30,000 $30,000 / 12 months = $2,500 per month ...

Accelerated depreciation allows businesses to write off the cost of an asset more quickly than the traditional straight-line ...

What is Accumulated Depreciation? 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 ...

Accounting for Depreciation A newly purchased asset goes on your balance sheet "at cost" -- meaning that you list its value at whatever amount you paid to acquire the asset and get it ready for use.

You normally must file IRS Form 3115, Application for Change in Accounting Method, before switching the depreciation method you apply to a fixed asset. You must include a justification for your ...

Accelerated depreciation is a method used in accounting to allocate the cost of certain assets over their useful life spans using a shorter time period than the traditional straight-line method.

Accelerated depreciation allows businesses to write off the cost of an asset more quickly than the traditional straight-line method. This can provide asset owners with potentially valuable tax ...