Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

accelerated depreciation method

Read a random definition: judicial ethics

A quick definition of accelerated depreciation method:

The accelerated depreciation method is a way to estimate how much an asset will wear out or become obsolete over time. This method is useful for calculating how much money a company can deduct from their taxes each year for the depreciation of their assets. The accelerated method allows for larger deductions in the earlier years of an asset's life and smaller deductions in the later years. There are other methods of depreciation, such as the straight-line method, which spreads the cost of the asset evenly over its useful life. Each method has its own formula for calculating depreciation.

A more thorough explanation:

The accelerated depreciation method is a formula used to estimate the wear, use, or obsolescence of an asset over its useful life. This method is useful in calculating the allowable annual tax deduction for depreciation.

Unlike the straight-line depreciation method, which spreads the cost of an asset evenly over its useful life, the accelerated depreciation method allows for larger deductions in the earlier years of an asset's life and smaller deductions in the later years. This can be beneficial for businesses that want to reduce their taxable income in the short term.

For example, let's say a company purchases a machine for $100,000 with a useful life of 5 years and no salvage value. Using the straight-line method, the annual depreciation expense would be $20,000 ($100,000 divided by 5 years). However, using the double-declining balance method, the company could deduct $40,000 in the first year, $24,000 in the second year, $14,400 in the third year, and so on.

Overall, the accelerated depreciation method can help businesses save money on taxes in the short term, but it may result in a higher tax bill in the long term as the deductions decrease over time.

Accelerated Cost Recovery System | accelerated disclosure

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
Dkk
13:29
I'm at your mommas house rn: https://x.com/Mansavelli_/status/1648073454665572352
triplethread
13:29
im addicted to reacting to all of the decisions
triplethread
13:29
with the emojis
HopefullyInLawSchool
13:29
I shop at Joe
HopefullyInLawSchool
13:29
Joe's
glovediedthisishismom
13:30
i shop at tawget
glovediedthisishismom
13:30
im dawk gawthic maga
triplethread
13:30
i shop at giant eagle
ForDizzyDJoy
13:31
How did i miss Fordham and American’s wave and I applied in september 🙃
13:33
Lol UC Davis took me of ED and put me in RD
13:34
surprised I didnt get straight denied
HopefullyInLawSchool
13:34
they emailed you/
HopefullyInLawSchool
13:34
?
13:35
@HopefullyInLawSchool: Yea, I just got it
i just want a cornell ii :(
13:37
yak you will be fucking shit up at cornell this time next year dw
i love u
13:38
love you too bby
glovediedthisishismom
13:42
what if desantis appoints lara trump and matt gaetz to be floridas senators
Dkk
13:42
Sounds good to me
HopefullyInLawSchool
13:43
@glovediedthisishismom: What if he appoint Ym instead?
HELP
every damn opportunity
13:47
do schools straight reject people from ed or to they always ed-rd if its a no for ED?
HopefullyInLawSchool
13:48
Some schools rject
13:49
Thanks! I couldn't find any reddit thread about it lol
13:49
but just means now I have to wait for the rejection from Davis
glovediedthisishismom
13:53
i just wanna rock
glovediedthisishismom
13:53
bodyadaya
13:53
let it rock
LSD+ is ad-free, with DMs, discounts, case briefs & more.