how does the double declining balance depreciation method work 
the double declining method involves depreciating an asset more heavily in the early years of its useful life a business might write off 3 000 of an asset valued at 5 000 in the first year rather than 1 000 a year for five years as with straight line depreciation the double declining method depreciates assets twice as quickly as the declining balance method as the name suggests 5the bottom linea declining balance method accelerates depreciation so more of an asset s value can be recorded earlier in its useful life the flip side is that less of its value can be claimed in its later years this method is most suitable for assets and equipment that can be expected to become useless and obsolete within a few years such as technology products all methods of depreciation can affect a business s tax picture and taxes owed 