Business & Accounting
Depreciation
Definition
The allocation of the cost of a tangible asset over its useful life. When a business purchases equipment, a vehicle, or furniture, the cost is not expensed entirely in the year of purchase but spread across the years it will be used. Common methods include straight-line (equal amounts each year), declining balance (larger deductions early), and Section 179 (full deduction in year one for qualifying assets up to $1,220,000 in 2026). Depreciation reduces taxable income and is tracked in bookkeeping spreadsheets to ensure accurate tax reporting.
Related Templates
These SheetCraft templates use or relate to Depreciation:
- Small Business Bookkeeping System, Simple bookkeeping for small business owners who don't have an accountant, income, expenses, P&L, sales tax, and bank reconciliation.