Accelerated depreciation is a method for allocating the cost of an asset in a manner that provides greater deductions in the earlier years of the asset's life. This method is advantageous for tax purposes, offering businesses the opportunity to defer tax payments.
Depreciation methods are accounting techniques used to allocate the cost of an asset over its useful life. These methods help businesses recognize the wearing out, aging, or decrease in value of an asset.
Recapture rate in appraisal describes the rate at which an investment is recovered in a wasting asset. It is added to the discount rate to derive the capitalization rate. This rate can be calculated using methods such as straight-line, sinking fund, or annuity.
