tax depreciation
- noun
- /tæks dɪˌpriːʃiˈeɪʃən/
- Specialized
:
depreciación fiscal
- The company claimed tax depreciation on its new machinery to reduce its taxable income.
Examples
-
Japanese tax depreciation rules provide for a mix of ordinary depreciation, increased initial depreciation, and accelerated depreciation measures, depending on the circumstances.
Academic text (1993) -
Accelerated federal tax depreciation can add significant value.
Blog text (32) -
Earnings before interest, tax, depreciation.
-
Investors often look for businesses that effectively manage tax depreciation to maximize their returns.
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To improve cash flow, the small business utilized tax depreciation as a strategic financial tool.
Synonyms
115
3.0
An amount taken away from a total, for example from pay
98
3.0
A smaller tax people or companies must pay to encourage certain activities
22
3.4
An expense or amount you can subtract from your income to lower your tax
15
6.3
Loss of value of something like a car as it gets older or wears out
1
4.0
An amount a business can subtract from its income before paying taxes for money spent running the business
An amount taken off profit for tax because a business asset loses value over time
An amount companies record each year as an expense to show equipment loses value
How Beneficial
599
3.2
- Specialized
148
3.2
- Specialized
22
3.4
- Specialized
- Formal
27
5.1
- Specialized
20
3.3
Surface Forms
Morphology
The compound is compositionally built from 'tax' (government charge) + 'depreciation' (decline in asset value), so a learner who knows both words will grasp that it relates to depreciation in a tax context. However, the precise sense — that it is an accounting/tax allowance used as a deductible recovery of asset cost over time — is a specialized fiscal usage that is not fully predictable for a general B1 learner without some domain knowledge.
Etymology
Tax depreciation comes from the picture of a business buying a machine that slowly wears out. The depreciation is the part of its value that gets used up and the tax part means the government lets the business count that yearly wear as a cost to 'lower' the tax it pays, so tax depreciation means 'spreading the cost of a business item over several years'.