Depreciation

Depreciation in United States

Practical Information

Note: Some of this information was last updated in 1982

The decline in value of an asset caused by wear, tear, and obsolescence. A corporation may deduct depreciation as an expense on its federal income tax return. An individual may take a deduction for depreciation of income producing property from his or her adjusted gross income. (See income (in U.S. law).) The depreciation allowance that is taken during the useful life of the property should be part of a reasonably consistent plan (not necessarily the same rate each year) authorized under federal income tax law. The total depreciation deductions may not exceed the difference between the cost (or other basis) and the salvage value of the property.

(Revised by Ann De Vries)

What is Depreciation?

For a meaning of it, read Depreciation in the Legal Dictionary here. Browse and search more U.S. and international free legal definitions and legal terms related to Depreciation.

Other Popular Tax Concepts

Depreciation in State Statute Topics

Introduction to Depreciation (State statute topic)

The purpose of Depreciation is to provide a broad appreciation of the Depreciation legal topic. Select from the list of U.S. legal topics for information (other than Depreciation).

Resources

Further Reading

Depreciation in the Federal Budget Process

Meaning of Depreciation in the congressional and executive budget processes (GAO source): The systematic and rational allocation of the acquisition cost of an asset, less its estimated salvage or residual value, over its estimated useful life. Depreciation reflects the use of the asset(s) during specific operating periods in order to match costs with related revenues in measuring income or determining the costs of carrying out program activities.

Resources

See Also

Further Reading

  • Legislatures and the budget process: the myth of fiscal control

    (J Wehner, 2010)

  • Reconcilable Differences?: Congress, the Budget Process, and the Deficit (JB Gilmour, 1990)
  • Fiscal institutions and fiscal performance

    (JM Poterba, J von Hagen, 2008)

Economic Age-life Method of Depreciation in the context of Real Estate

Resurces

See Also

  • Age-Life Method of Depreciation

Economic Depreciation in the context of Real Estate

Resurces

See Also

  • Economic Obsolescence

Physical Age-life Method of Depreciation in the context of Real Estate

Resurces

See Also

  • Age-Life Method of Depreciation

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