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LSDefine

Simple English definitions for legal terms

accelerated depreciation

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A quick definition of accelerated depreciation:

Accelerated depreciation is a way for businesses to decrease the value of an asset faster in the beginning of its life. This means they can deduct more money from their taxes sooner. It's like getting a bigger allowance earlier, which is better because money is worth more when you get it sooner. This is different from straight-line depreciation, where the value of the asset is decreased evenly over its entire life.

A more thorough explanation:

Accelerated depreciation is a way for businesses to depreciate a larger portion of an asset's value earlier in its life. This is different from straight-line depreciation, where the asset's value is depreciated evenly over its useful life.

One common method of accelerated depreciation is called MACRS. This method allows businesses to take larger depreciation deductions in the early years of an asset's life, which can be beneficial for cash flow and tax purposes.

For example, let's say a business purchases a delivery truck for $50,000. Using straight-line depreciation, the business would deduct $10,000 per year for five years. However, using MACRS, the business could deduct $20,000 in the first year, $32,000 in the second year, and so on. This means the business can deduct more in the early years, which can help with cash flow and reduce taxable income.

Accelerated depreciation is generally preferred by businesses because it follows the principle of the time-value of money. This means that money received earlier is more valuable than money received later. By taking larger depreciation deductions earlier, businesses can save money in the long run.

abut | accelerated filer

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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