Estimated Useful Life

Definition of Estimated Useful Life

The period over which a particular taxpayer will use an asset. Although such period cannot be longer than the estimated physical life of an asset, it could be shorter if the taxpayer does not intend to keep the asset until it wears out. Assets such as goodwill do not have an estimated useful life. The estimated useful life of an asset is essential to measuring the annual tax deduction for depreciation and amortization and in determining the amount of any investment tax credit allowable.

That's the definition of Estimated Useful Life in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.