Annual depreciation rate
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Annual depreciation rate is the annual expense that accountants charge against income for "wear and tear" of an asset. For tax purposes, the IRS provides that appropriate MACRS rates be used that are dependent on an asset's class life.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Annual depreciation rates. The annual expense accountants charge against income for “wear and tear” of an asset. For tax purposes, the IRS provides that appropriate MACRS rates be used that are dependent on an asset's class life.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
