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As a practical matter, most companies will have a depreciation policy which states which states how various broad categories of assets will be depreciated.
As a practical matter, most companies will have a depreciation policy which states which states how various broad categories of assets will be depreciated.
==U.S. Tax Code==
The U.S. Tax Code has undergone major, significant revisions of method and treatment of depreciation since it first began about 1919, and likely will continue to be revised in the future.<ref>Election year rhetoric about "closing loopholes" and "tax cuts for the rich", when applied, usually relates to affecting depreciation schedules and classification.</ref> Typically deppreciable assets are classified as three year property, five year property, and ten year property; that is, assets with a three useful life (such as computers & furniture), five year useful (like automobiles) and ten year useful life (like buildings). These is commonly refereed to as 10-5-3 Depreciation with schedules printed by the IRS showing how much of a capital investment could be deducted in a current year. In the early 1980s, Accelerated Depreciation was allowed for certain types of assets, later revised to Modified Accelerated Depreciation.<ref>a tax increase</ref> The Section 179 Deduction now allows for "expensing", or writing off the total amount of a capital investment (within limits) in the same year the investment is made or property acquired.
==Physics==
Depreciation is a term in economics and accounting. The term in physics known as [[entropy]] expresses a similar concept of how everything material degrades over time.
Depreciation is a term in economics and accounting. The term in physics known as [[entropy]] expresses a similar concept of how everything material degrades over time.
==Notes==
<references/>
[[Category:Accounting Terms]]
[[Category:Accounting Terms]]
[[Category:Accounting]]
[[Category:Accounting]]
[[Category:Economics]]
[[Category:Economics]]