accelerated depreciation

Meaning

1. 1noununcountabletechnical

   An accounting method that writes off more of an asset's cost in its early years, so expenses are larger at first and smaller later.

   Grammar: Usually uncountable: the firm used accelerated depreciation.

   Patterns

   • use accelerated depreciation
   • accelerated depreciation of something

   The company chose accelerated depreciation to lower its taxable profit this year.

   Accelerated depreciation suits equipment that loses value quickly, such as computers.

   Under accelerated depreciation, most of the cost is deducted in the first few years.

Common combinations

claim accelerated depreciation

The factory claimed accelerated depreciation on its new machines.

accelerated depreciation method

Each accelerated depreciation method front-loads the deductions.

accelerated depreciation schedule

The accountant explained the accelerated depreciation schedule.

tax benefit of accelerated depreciation

The tax benefit of accelerated depreciation is a deferral, not a permanent saving.

Synonyms and how they differ

front-loaded depreciation

Front-loaded depreciation is a descriptive, informal way to say the same idea and is not a formal accounting term.

declining-balance depreciation

Declining-balance is one specific type of accelerated depreciation, not a general label for the whole group.

rapid write-off

Rapid write-off is a looser phrase that can also mean deducting the full cost at once.

Opposites

Word family

depreciate verb

to lose value over time

depreciation noun

the loss in value of an asset

accelerate verb

to make something happen faster

depreciable adjective

able to be depreciated

Commonly confused: accelerated depreciation or amortization?

Practice

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Write a sentence using “accelerated depreciation”, then check it and compare it with the examples above.

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