General Depreciation System - GDS


DEFINITION of 'General Depreciation System - GDS'

The most commonly used modified accelerated cost recovery system (MACRS) for calculating depreciation. A general depreciation system uses the declining-balance method to depreciate personal property.

BREAKING DOWN 'General Depreciation System - GDS'

The declining-balance method involves applying the depreciation rate against the
non-depreciated balance. For example, if an asset that costs $1,000 is depreciated at 25% each year, the deduction is $250.00 in the first year and $187.50 in the second year, and so forth.

  1. Fully Depreciated Asset

    A property, plant, or piece of equipment which, for accounting ...
  2. Modified Accelerated Cost Recovery ...

    The new accelerated cost recovery system, created after the release ...
  3. Accounting

    The systematic and comprehensive recording of financial transactions ...
  4. Depreciation

    1. A method of allocating the cost of a tangible asset over its ...
  5. Declining Balance Method

    A common depreciation-calculation system that involves applying ...
  6. Operating Income

    The amount of profit realized from a business's operations after ...
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