Which accounting method involves deducting depreciation expenses from a property's income?

The straight-line cost recovery method is the accounting approach that involves deducting depreciation expenses from a property's income on a consistent basis over the useful life of the asset. This method assumes that the asset will lose value evenly over time, allowing property owners to allocate the same amount of depreciation expense each year.

This consistent allocation makes financial reporting straightforward, as it simplifies accounting and budgeting. By deducting depreciation expenses, property owners can lower their taxable income, which can have significant tax implications. The straight-line method is commonly used because of its simplicity and predictability, making it easier for investors and property managers to forecast their financial outcomes.

On the other hand, the other methods mentioned, such as accelerated depreciation, amortization, and declining balance, involve different ways of calculating depreciation. Accelerated methods allow for larger deductions in the early years of an asset's life, while the declining balance method applies a fixed percentage to the remaining book value of the asset. Amortization, while related, typically refers to the process of paying off intangible assets over time rather than physical property. Each of these methods has its unique calculations and implications that differ from the straight-line cost recovery method, which is why the answer points specifically to it.