Accelerated Depreciation

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DEFINITION of 'Accelerated Depreciation'

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.

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    Depreciation offers businesses a way to recover the cost of an eligible asset by writing off the expense over the course ... Read Full Answer >>
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