A method of depreciation by which each year's depreciation is a percentage of the reduced basis of the asset. In general, the declining balance rate may be 200, 150 or 125 percent of straight-line depreciation.
A type of accelerated depreciation in which a constant percentage of an asset's declining, or remaining, basis is expensed each year.
An accelerated method of depreciation used for tax purposes, whereby a percentage of the straight-line depreciation is taken from a constantly declining balance.
An accelerated method of depreciation in which a greater deduction is allowed in the early years, and less in later years.
The method of depreciation, usually for tax purposes, in which a specified percentage (e.g. 150%, 200%, etc.) is applied to the balance of unclaimed depreciation remaining to determine what depreciation may be taken in the current tax year
An accounting method for computing depreciation which requires that the depreciable balance be declined by the amount depreciated each year. Mainly used for income tax purposes, however, it is the basis for calculating periodic interest payments on an amortized loan.