Depreciation Rate (Noun)
Meaning
The rate at which the value of property is reduced; used to calculate tax deduction.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The depreciation rate for equipment in the manufacturing industry was set at 10% annually for tax purposes.
- To calculate the annual tax deduction, the company applied a depreciation rate of 20% to the cost of the new machinery.
- The business consultant explained that a higher depreciation rate would result in larger tax deductions in the early years of ownership.
- The accountant used a depreciation rate of 5% to determine the annual reduction in value of the company's office building.
- The IRS established a standard depreciation rate of 27.5 years for residential rental properties, which could be used to calculate yearly tax deductions.