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Rubric Financial

Accounting

Depreciation

The systematic expensing of a long-lived asset's cost over its useful life.

Depreciation matches the cost of a fixed asset (equipment, vehicles, buildings) with the periods that benefit from its use. Common methods: straight-line (equal each year) and accelerated (more in early years).

Tax depreciation often differs from book depreciation. Section 179 expensing and bonus depreciation allow immediate or accelerated deduction for many small business assets.

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