Writing off the capitalized cost of "wasting assets" (those that lose value over time because of wear and tear, physical deterioration, or obsolescence, and that have a reasonably ascertainable useful life) over their estimated useful lives. This has the effect of deducting the total cost of an asset over the years in which it is used to help generate revenue for the taxpayer. Land and works of art acquired for display are not subject to such income tax treatment.

Formerly known as "depreciation" for tax purposes is the systematic calculated reduction in value of a property's improvements to reflect wear and tear, and obsolescence. The calculated amount of cost recovery is deducted from the Net Operating Income of an investment property to determine taxable income and reduces the Basis which determines the taxable gain at sale. See Basis & Recapture.

The ratio between fare revenue and operating costs.

Systematic method of spreading the cost of an asset over its expected useful life.

An annual deduction based on the class life of an asset.

Now used to describe depreciation.

IRS ( Internal Revenue Service ) term for depreciation.