accelerated depreciation business definition

An Accelerated Cost Recovery System method for writing off the cost of a capital asset by taking the largest deductions in the early years of the asset's life. The purpose of using accelerated depreciation is to delay the payment of taxes so that cash savings from the deferral can be reinvested to earn additional income. Compare straight-line depreciation. See also declining-balance method, double-declining-balance depreciation, Modified Accelerated Cost Recovery System, sum-of-the-years'-digits method.