Sum-of-the-years' digits

An accelerated depreciation method that charges a declining fraction of cost each year, using the remaining years of life over the sum of all the years. A five-year asset takes 5/15 of its cost in year one, 4/15 in year two, and so on.

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Related terms

Tax and depreciation

• Accelerated depreciation
• Diminishing value
• Double declining balance
• Tax deferral
• Tax timing strategies
• Temporary full expensing / instant asset write-off
• Units of production