Frequently Asked Questions
What is depreciation?
Depreciation is the accounting method of allocating the cost of a tangible asset over its useful life. It reflects the decrease in value over time.
What is the difference between straight-line and declining balance?
Straight-line depreciates equally each year, while declining balance front-loads depreciation with higher amounts in early years that decrease over time.
What is useful life?
Useful life is the estimated period over which an asset is expected to be usable. Tax authorities provide guidelines for different asset categories.
Updated 2026 — latest rates