Tax Depreciation
/ˈtæks dɪˌpriːʃiˈeɪʃən/
Definitions
- (n.) The method by which a taxpayer deducts the cost of tangible or intangible assets over time to reduce taxable income.
The company claimed tax depreciation on its equipment to lower its taxable income.
- (n.) A legally prescribed schedule and rules governing the allowed rate and timing of asset value write-offs for tax purposes.
Tax depreciation schedules vary depending on the type of asset and jurisdiction.
Forms
- tax depreciation
Related terms
See also
Commentary
Tax depreciation is distinct from accounting depreciation and follows specific tax codes; drafters should clarify which system applies when referencing depreciation in legal contexts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.