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. Alternative Depreciation System ...

    Alternative Depreciation System is a depreciation schedule with ...
  2. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax ...
  3. Unit of Production Method

    The unit of production method calculates depreciation when the ...
  4. Sum-Of-The-Years' Digits

    An accelerated method for calculating an asset's depreciation. ...
  5. Annuity Method of Depreciation

    The annuity method of depreciation is a method used to calculate ...
  6. Modified Accelerated Cost Recovery ...

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