Definition

1. Noun:
   • The rate at which the value of property is reduced: The "depreciation rate" is a percentage or fixed amount used to calculate the annual decrease in the value of a tangible asset over its useful life. This reduction in value is used to calculate tax deductions for businesses.

Usage Examples

• Noun:
  • The company uses a straight-line depreciation rate of 10% for its office equipment.
  • Accelerated depreciation rates allow for larger tax deductions in the early years of an asset's life.
  • Calculating the correct depreciation rate is essential for accurate financial reporting.

Advanced Usage

• "To apply a depreciation rate": To use a specific percentage or formula to calculate the annual depreciation expense.
  • The accountant will apply the depreciation rate to the asset's initial cost.
• "Annual depreciation rate": The specific rate used for a single fiscal year.
  • The annual depreciation rate for the vehicle is set at 20%.

Variants and Related Words

• Depreciation (n): The process or amount of an asset's value decreasing over time.
  • The depreciation of the machinery was recorded in the ledger.
• Depreciable (adj): Describing an asset that is eligible to lose value for tax purposes.
  • Land is not a depreciable asset.
• Depreciate (v): To decline in value over time.
  • Most cars depreciate rapidly in their first few years.

Synonyms

• Amortization rate: Often used similarly for intangible assets.
• Write-off rate: Informal term for the rate of value reduction.

Related Phrases

• Rate of depreciation: A phrase with identical meaning to "depreciation rate".
  • The rate of depreciation depends on the asset's category and useful life.

Noun

1. the rate at which the value of property is reduced; used to calculate tax deduction