What is Accelerated Depreciation?

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Accepted Answer

A method of depreciation that allows a higher deduction in the early years of an asset's useful life, with the remaining value being depreciated over a longer period of time. This method is often used for tax purposes and allows businesses to receive larger deductions in the short term, while spreading out the remaining cost over a longer period. Accelerated depreciation is a way for businesses to receive tax benefits for the purchase of long-term assets, such as equipment or buildings. It can be especially useful for businesses that expect the value of the asset to decline significantly over time.

Real Estate Glossary

What is Accelerated Depreciation?