depreciation method

A set formula used in estimating an asset’s use, wear, or obsolescence over the asset’s useful life. • This method is useful in calculating the allowable annual tax deduction for depreciation. See USEFUL LIFE. [Cases: Internal Revenue 3470–3505; Taxation 1044.C.J.S. Internal Revenue §§ 223–249, 252, 259–265, 278, 489, 671, 673, 799; Taxation §§ 1741–1742.]