accelerated depreciation

USAGE SUMMARY

"accelerated depreciation" is a correct and usable phrase in written English.
Generally, accelerated depreciation refers to certain tax breaks offered to businesses that allow them to depreciate their assets more quickly for tax purposes. For example, "The company took advantage of the accelerated depreciation benefits offered by the government so they could write off their asset investments more quickly."

✓ Grammatically correct

News & Media

Formal & Business

Wiki

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

tax credit and accelerated depreciation.

The New York Times

For example, you get accelerated depreciation for pollution-control equipment.

The New York Times

Others want investment tax credits and accelerated depreciation schedules.

The Economist

"The accelerated depreciation will mean we will pay less taxes for quite some time".

The New York Times

The same is true of deductions for pensions and countless special corporate benefits, like accelerated depreciation.

The New York Times

According to the PBO, the removal of accelerated depreciation would save $2.75bn over four years.

The Guardian

Most important is an accelerated depreciation allowance of 80% in the year of installation.

The Economist

He recommends tightening accelerated depreciation, but that could discourage manufacturing investment.

The New York Times

Unlike the situation with the deduction, only new equipment — not used — qualifies for accelerated depreciation.

The New York Times

In 1953, before accelerated depreciation was put in place, one major regional shopping center was built in the United States.

The New Yorker

Proposals will also be submitted for accelerated depreciation allowances for business to provide necessary capital so as to create jobs.

The New York Times

Expert writing Tips

Best practice

When discussing "accelerated depreciation", clearly specify the method being used (e.g., double-declining balance, sum-of-the-years' digits) to avoid ambiguity.

Common error

Avoid assuming that "accelerated depreciation" always refers to a single method. Different methods exist, and their impacts on financial statements can vary significantly.

Linguistic Context

The phrase "accelerated depreciation" functions as a noun phrase, typically used as a subject or object within a sentence. It describes a specific accounting method. Ludwig AI confirms it as a valid phrase. For example, "The "accelerated depreciation allowance" of 80% in the year of installation" (The Economist).

Expression frequency: Very common

Frequent in

News & Media

47%

Formal & Business

25%

Wiki

7%

Less common in

Science

21%

Ludwig's WRAP-UP

The phrase "accelerated depreciation" is a well-established term in finance and accounting, referring to depreciation methods that allow businesses to deduct a larger portion of an asset's cost in the early years. As Ludwig AI confirms, it's grammatically correct and widely used. Its purpose is primarily descriptive, serving to explain a specific accounting and tax strategy. The register tends to be professional, appearing frequently in news articles, formal business documents, and accounting discussions. Key related phrases include ""rapid depreciation"" and ""accelerated cost recovery"". Understanding the nuances of "accelerated depreciation" is crucial for businesses seeking to optimize their tax liabilities and cash flow.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

rapid depreciation

Focuses on the speed of depreciation, similar to the original phrase.

front-loaded depreciation

Emphasizes that the depreciation is concentrated in the early years.

early depreciation

Highlights the timing of the depreciation expense.

accelerated cost recovery

Uses a broader term 'cost recovery' but maintains the 'accelerated' aspect.

expedited depreciation

Replaces 'accelerated' with a synonym, 'expedited'.

increased depreciation rate

Focuses on the rate of depreciation rather than the process.

enhanced depreciation allowance

Highlights the allowance or tax benefit associated with the depreciation.

bonus depreciation

This term is commonly used to refer to an additional depreciation allowance in the first year of an asset's life.

stepped-up depreciation

This is a rarer term, but conveys the same sense of increasing depreciation.

modified accelerated cost recovery system

Refers to a specific system (MACRS) used in the United States for accelerated depreciation.

FAQs

How does "accelerated depreciation" benefit businesses?

Accelerated depreciation allows businesses to deduct a larger portion of an asset's cost in the early years of its life, reducing taxable income and increasing cash flow in the short term.

What are some common methods of "accelerated depreciation"?

Common methods include the double-declining balance method, the sum-of-the-years' digits method, and certain bonus depreciation allowances. Each method calculates depreciation expense differently.

How does "rapid depreciation" compare to straight-line depreciation?

While accelerated depreciation methods recognize more depreciation expense in the early years, straight-line depreciation spreads the expense evenly over the asset's useful life. The total depreciation expense is the same under both methods, but the timing differs.

Why might a company choose "accelerated cost recovery" over other depreciation methods?

Companies might choose accelerated methods to reduce their tax burden in the short term, improve their cash flow, or reflect the actual decline in an asset's value more accurately if it depreciates faster early in its life.