Depreciation
Defined in 1 dictionary — Case Law
Definitions from Case Law
From 274 U.S. 295 - United States v. Ludey · 1927Most cited · 811 citing opinions
The depreciation charge permitted as a deduction from the gross income in determining the taxable income of a business for any year represents the reduction, during the year, of the capital assets through wear and tear of the plant used. The theory underlying this allowance for depreciation is that by using up the plant a gradual sale is made of it. The depreciation charged is the measure of the cost of the part which has been sold.