Accelerated Depreciation

What Does Accelerated Depreciation Mean?
Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years of the life of an asset.

Investopedia explains Accelerated Depreciation
The straight-line depreciation method spreads the cost evenly over the life of an asset. On the other hand, a method of accelerated depreciation like the double declining balance (DDB) allows you to deduct far more in the first years after purchase.

Related Terms

Accounting
Asset
Bonus Depreciation
Depreciation
General Depreciation System
Group Depreciation
Tangible Personal Property
More Related Terms

Related Links

Appreciating Depreciation - Companies make choices and assumptions in calculating depreciation, and you need to know how these affect the bottom line.
Valuing Depreciation With Straight-Line Or Double-Declining Methods - Appreciate the different methods used to describe how book value is "used up".
Advanced Financial Statement Analysis - Learn what it means to do your homework on a company's performance and reporting practices before investing.
The Hidden Entitlements - A very interesting article that sheds some light on how accelerated depreciation came to be. Hint: it involves Nixon.

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