Investor Glossary-useful lifeInvestor Glossary-useful lifeInvestor Glossary-useful lifeInvestor Glossary-useful lifeInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Useful Life

The HTML to link to this page
 

Useful life refers to the expected period of time that an asset remains in use or usable. Costs of assets with a useful life of one year or less are typically deducted as expenses. However, assets with a useful life greater than one year can be depreciated. Methods of depreciation all track the remaining value of the asset over the asset's useful life. For example, for intangible property, the straight line method of depreciation is often used. However, in order to depreciate most tangible property (except land) over their useful life, the Modified Accelerated Cost Recovery System (MACRS) is typically used. Using an accelerated method accounts for more of the loss of value for the asset earlier in the asset's useful life. The IRS provides tables of the useful life of most capital equipment.

Publication 946 entitled, "How to Depreciate Property" contains general information on depreciation over an asset's useful life. In addition, please see the following IRS publications for specific descriptions of depreciating assets over their useful life:

Publication # Title
---------------------------------------------------------------------------------
463 Travel, Entertainment, Gift, and Car Expenses
544 Sales and Other Dispositions of Assets
551 Basis of Assets
587 Business Use of Your Home (Including Use by Daycare Providers)



Rate this useful life definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: in escrow, wholly-owned subsidiary, risk management, phantom income, class C shares, deferred tax, minority interest, 1031 exchange, command economy, stock market close, VIX, 144a, average price per share, cancelled check, deferred revenue, 401a, 1035 exchange, EBITDA, required rate of return, debt service coverage, option premium, current ratio, margin rate, open position, limit order, reverse mortgage, FICO score, Zero Cost Collar, covered put, ex-dividend, FTSE, real GDP, liquidity ratio, LIBOR, labor relations, balance sheet, implied volatility, Key Rate Duration, irrevocable trust, diluted share, quality assurance, retained earnings, stock split, inflation, APR, ex-dividend date, dividends payable, annual return, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use