Dictionary of Real Estate Terms: sum-of-years-digits depreciation
sum-of-years-digits depreciation
in tax and accounting, a method of allocating the cost of an asset over its useful life. It requires a fraction to be computed each year, which is applied against the depreciable amount. The numerator is the number of years left to be depreciated. The denominator is the sum of the years digits of the depreciable life. The formula for the denominator is:
