The major differences between accounting depreciation and tax depreciation are as follows −
It is prepared for accounting purpose.
It is based on International Accounting Standards Board (IASB) and accounting principles.
One can choose any depreciation method.
It is more accurate as compared to tax depreciation.
It is prepared for income tax purpose.
It is based on Internal Revenue service (IRS) regulations.
It uses accelerated depreciation method.
It is less accurate as compared to accounting depreciation.