rate of depreciation Synonyms
No Synonyms and anytonyms found
rate of depreciation Meaning
Wordnet
rate of depreciation (n)
the rate at which the value of property is reduced; used to calculate tax deduction
rate of depreciation Sentence Examples
- The building had a rate of depreciation of 2.5% per year, resulting in a gradual decrease in its value over time.
- The accelerated rate of depreciation allowed the company to claim a larger tax deduction in the early years of the asset's life.
- The rate of depreciation is determined by factors such as the asset's useful life and salvage value.
- The higher the rate of depreciation, the quicker the asset will lose its value on paper.
- Using a straight-line method of depreciation, the rate of depreciation remains constant over the entire life of the asset.
- The rate of depreciation affects the asset's net carrying value, which is the current book value after subtracting accumulated depreciation.
- The Internal Revenue Service sets rates of depreciation for different asset classes, which taxpayers must follow.
- The rate of depreciation can be adjusted based on changes in the asset's expected useful life or salvage value.
- A higher rate of depreciation can provide tax benefits, but it also means the asset will have a lower salvage value at the end of its life.
- Careful consideration of the rate of depreciation is essential for accurate financial reporting and tax planning.
FAQs About the word rate of depreciation
the rate at which the value of property is reduced; used to calculate tax deduction
No synonyms found.
No antonyms found.
The building had a rate of depreciation of 2.5% per year, resulting in a gradual decrease in its value over time.
The accelerated rate of depreciation allowed the company to claim a larger tax deduction in the early years of the asset's life.
The rate of depreciation is determined by factors such as the asset's useful life and salvage value.
The higher the rate of depreciation, the quicker the asset will lose its value on paper.
