Depreciable Basis

An asset's depreciable basis is the amount of the asset's acquired value for which an organization is allowed to claim depreciation. A percentage of this basis is deducted each year. The depreciable basis is the cost or acquired value of the asset. Under some depreciation methods, the cost is reduced by salvage value to determine the depreciable basis.

In summary, an asset's depreciable basis equals the following:

	the asset's acquisition value
minus	the salvage value if the asset uses a straight-line, sum-of-the-years'-digits, or custom depreciation method