Accounting professionals understand how depreciation impacts financial statements and use this knowledge to analyze a company’s financial health. This strategy helps align assets with the ...

Image source: Getty Images. The accounting of amortization and depreciation is essentially the same. So, for our example, we can simplify the process and just consider a simple equipment purchase.

In traditional accounting, depreciation schedules allow corporations and individuals to declare a certain percentage of loss on depreciable assets, which in turn lowers profits and subsequent tax ...

This write-down establishes a new cost basis for the asset, which becomes the starting point for future depreciation calculations. Under U.S. accounting standards, impairment losses cannot be ...

andresr/Getty Images For rental property owners, understanding depreciation is an important consideration for maximizing tax benefits and maintaining compliance with IRS regulations. This tax ...