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A method of depreciation that allows a higher deduction in the early years of an asset's useful life, with the remaining value being depreciated over a longer period of time. This method is often used for tax purposes and allows businesses to receive larger deductions in the short term, while spreading out the remaining cost over a longer period. Accelerated depreciation is a way for businesses to receive tax benefits for the purchase of long-term assets, such as equipment or buildings. It can be especially useful for businesses that expect the value of the asset to decline significantly over time.
