Related topics

Straight-Line (Method SL)

Straight-Line, Full-Month (Method SF)

Straight-Line, Half-Year (Method SH)

Straight-Line, Modified Half-Year (Method SD)

Straight-Line Methods

The straight-line method is the simplest and most commonly used method for calculating depreciation. It can be used for any depreciable property, but it is not generally allowed for ACRS or MACRS property, which for tax purposes must use ADS straight-line MACRS (method AD) or straight-line, alternate ACRS (methods SA and ST) for straight-line treatment. Under the straight-line depreciation method, the basis of the asset is written off evenly over the useful life of the asset. The same amount of depreciation is taken each year.

The straight-line method is approved under Generally Accepted Accounting Principles (GAAP) and is frequently used for internal books. In general, the amount of depreciation equals an asset's depreciable basis divided by its estimated life.

The application supports four standard straight-line methods, each using a different averaging convention: