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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | 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