How Often Do You Change Brake Fluid? Brake fluid is something thatâs important for the safe operation of your vehicle, but most people donât know how or when it should be changed. The average person drives anywhere from ten to fifteen thousand miles per year, and they use their brakes about 75,000 times.
DEFINITION of 'Depreciation'. 1. A method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both tax and accounting purposes. 2. A decrease in an asset's value caused by unfavorable market conditions.
Depreciation is a tax-deductible business expense. Depreciation for tax purposes is determined by an IRS formula and has nothing to do with the actual value of equipment at year end. Instead, the amount claimed as depreciation is designed to spread the cost of the equipment over time and maximize the annual tax deductions associated with it.