Assets like equipment, vehicles and furniture lose value as they age. Parts wear out and pieces break, eventually requiring repair or replacement. Depreciation helps companies account for the ...

When your company purchases a fixed asset with an estimated lifetime exceeding one year, you cannot deduct the entire cost in the year of purchase. Rather, you must depreciate the asset by expensing a ...

When you run a small business, depreciating your equipment can help offset the purchase costs through tax savings. When handling the depreciation for your property, you get to choose which method you ...

Depreciation is the recovery of the cost of a physical asset, like property or equipment, over multiple years. It allows companies to spread out the cost of some expenses, reduce taxable income and ...

Accumulated depreciation is the sum of an asset’s depreciation expense. It’s calculated from the start of its use to a specific date. It’s also a contra-asset account. That means it decreases the ...

There are distinct advantages real estate investments deliver that other investments just can't offer. These include rental income, which acts like dividend income, along with substantial tax ...

Accelerated depreciation allows businesses to write off the cost of an asset more quickly than the traditional straight-line ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Dr. Melody Bell is a personal finance expert ...