Definition of "Straight line rule"

Krista Leighton real estate agent

Written by

Krista Leightonelite badge icon

Keller Williams

Method of depreciating an asset in which its useful life is divided into an appropriate number of years (or other periods), the final salvage value is deducted, and the asset is written off in an equal portion for each period. Depreciation is a business expense for tax purposes. Straight line depreciation is the simplest method, but is not as advantageous to an owner as accelerated depreciation, which allows a company to recover its costs more quickly.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Donation of amount "A," made by donor X to a charity. The charity agrees to pay donor X an amount ("B") for the rest of donor X's life. Since the donation is used to fund an annuity, only a ...

Technique used by insurance companies in the purchasing of debt obligations of corporations as a means to: (1) avoid the uncertainties of the market; (2) replace market negotiations with ...

Insurance policy that pays a face amount/ lump sum if the insured is diagnosed with a specified critical illness. This sum is paid directly to the insured regardless of any other sources of ...

Gain when the underlying asset that moves in one direction is significantly different from the loss when the underlying asset moves in the opposite direction; for example, when gains and ...

Methods by which a home office underwriter chooses applicants that an insurer will accept. The underwriter's job is to spread the costs equitably among members of the group to be insured. ...

Reinsurance clause that stipulates that the reinsurer will be subject to the same fate as the ceding company. ...

Provision found in juvenile insurance that waives the premiums due on the insured child's policy provided that the payor of the premiums becomes totally disabled or dies before the child ...

Same as term Participating Insurance: policy that pays a dividend to its owner. ...

Basic requirements of an employee benefit insurance plan such as minimum age and years of service with an employer. ...

Popular Insurance Questions