1. Home
  2. Business & Finance
  3. Tax Planning: U.S.

More from About.com

Depreciation

By William Perez, About.com

Definition: Depreciation is an income tax deduction that allows a taxpayer to recover the cost of property or assets placed in service. Depreciation is contrasted with an expense. Business expenses are fully deductible when incurred. The expense for purchasing a fixed asset, however, must be spread out over a number of years. Methods for calculating depreciation are detailed thoroughly in IRS Publication 946, How to Depreciate Property.
  1. Home
  2. Business & Finance
  3. Tax Planning: U.S.
  4. Get Tax Help
  5. Tax Terms A-Z
  6. Depreciation Definition - Tax Terms A-Z - About.com

©2008 About.com, a part of The New York Times Company.

All rights reserved.