A fixed asset that is subject to depreciation to account for its loss in value over time. Depreciation is a systematic process of expensing the cost of tangible assets over their useful lives.
Useful life refers to the period of time over which a depreciable asset is expected to provide a competitive return or service. The Modified Accelerated Cost Recovery System (MACRS) allows depreciable lives for tax deduction purposes that may differ from the useful life of the property.
