Related topics

Sum-of-the-Years'-Digits (Method YS)

Sum-of-the-Years'-Digits, Half-Year (Method YH)

Sum-of-the-Years'-Digits, Modified Half-Year (Method YD)

Sum-of-the-Years'-Digits Convention

Sum-of-the-Years'-Digits Calculation

Sum-of-the-Years'-Digits Example

Sum-of-the-Years'-Digits Depreciation

Sum-of-the-years'-digits depreciation is another way to accelerate the depreciation of an asset. It can result in deductions that are larger than those given by double declining-balance depreciation in the early years. Although the deductions get smaller each year, all of the asset's depreciable basis is written off over the property's useful life. It applies only to tangible assets with a useful life equal to or greater than 3 years.

For the Tax book, sum-of-the-years'-digits depreciation is normally used only for assets placed in service before 1981.

The application provides three standard sum-of-the-years'-digits depreciation methods, each using a different averaging convention: