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TeachMeFinance.com - explain sum-of-the-digits depreciation sum-of-the-digits depreciation -- a method of calculating the depreciation of residential property authorized by the 1969 Tax Reform Act. For example, assuming a structure has 20 useful years, its number of useful life-years would be calculated by adding: 1+2+3+4+5+6+7+8+9+10+11+12+13+14+15+16+17+18+19+20=210 years. This becomes the denominator in the calculation of the depreciation value in any given year. The numerator is the number of years remaining in the useful life of the property; in the first year this would be 20, in the second year 19, etc. Thus, the formula for establishing the deprecation value in the first year would be 20/210 times the depreciation base. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.