Depreciation is key in maximizing asset ROI, while minimizing the financial impact of acquisition. How companies choose to write down assets over time differs, yet all write-downs follow a ...

Understanding depreciation can help you lower taxes, plan smarter finances, and see the true value of what you own over time.

What is depreciation? Learn how it works, the main methods and how it impacts your business taxes and accounting.

In practice, depreciation does not eliminate tax cost over time. It merely redistributes it. When an asset is eventually disposed of, depreciation recapture comes into play, a mec ...

In accrual basis accounting, when your business purchases a long-lived asset, such as a vehicle, a building or a piece of equipment, you don't immediately write off the full cost as an expense. Rather ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Khadija Khartit is a strategy, investment, ...

Daniel Liberto is a journalist with over 10 years of experience working with publications such as the Financial Times, The Independent, and Investors Chronicle. Investopedia / Sydney Burns The ...

Depreciation is an accounting tool used to spread the cost of valuable assets over a number of accounting periods. Rather than incurring the entire expense in a single period, business owners can ...