depreciate

verb

de·pre·ci·ate | \di-ˈprē-shē-ˌāt

depreciated; depreciating

Definition of depreciate

1 : to lower in honor or esteem often depreciates the importance of her work

2a : to lower the price or estimated value of depreciate property

b : to deduct from taxable income a portion of the original cost of (a business asset) over several years as the value of the asset decreases

intransitive verb

: to fall in value advised us to sell the stock before it depreciates

Other Words from depreciate Synonyms & Antonyms Choose the Right Synonym More Example Sentences Learn More about depreciate

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Other Words from depreciate

depreciable \-shə-bəl

\ adjective

depreciatingly \-shē-ˌā-tiŋ-lē

\ adverb

depreciation \-ˌprē-shē-ˈā-shən

\ noun

depreciative \-ˈprē-shə-tiv,

-shē-ˌā-tiv \ adjective

depreciator \-shē-ˌā-tər

\ noun

depreciatory \-shə-ˌtȯr-ē

\ adjective

Choose the Right Synonym for depreciate

decry, depreciate, disparage, belittle mean to express a low opinion of. decry implies open condemnation with intent to discredit. decried their defeatist attitude depreciate implies a representing as being of less value than commonly believed. critics depreciate his plays for being unabashedly sentimental disparage implies depreciation by indirect means such as slighting or invidious comparison. disparaged polo as a game for the rich belittle usually suggests a contemptuous or envious attitude. belittled the achievements of others

Examples of depreciate in a Sentence

These changes have greatly depreciated the value of the house. The value of the house has depreciated greatly.

Recent Examples on the Web

Banks’s book, written in the aftermath of the historic vote, is a loose diary — a self-serving, funny, self-depreciating, humble-bragging insider’s account. — Karla Adam, Washington Post, "Arron Banks: The brash British millionaire who backed Brexit, befriended the Russian ambassador and loves Trump," 30 June 2018 But economists warn such pace is unsustainable and must cool off to contain risks associated with double-digit inflation and a fast-depreciating national currency. — David Gauthier-villars, WSJ, "Turkey’s Erdogan Calls Early Election," 18 Apr. 2018 Protesters shut down Tehran’s Grand Bazaar this week over the country’s depreciating currency. — Summer Said, WSJ, "Trump’s Bid to Weaken Iran Is Strengthening the Saudi Economy," 28 June 2018 Iranians are fed up with joblessness, soaring prices and a depreciating currency. — Erin Cunningham, Washington Post, "His nuclear deal and economy are crumbling, but don’t write off Iran’s president yet," 11 May 2018 Read more: Economic A-Team Down to Last Man as Erdogan Exerts His Power The lira, which had depreciated to a record low earlier, was trading 1 percent lower at 4.0378 per dollar at 3:34 p.m. in Istanbul. — Firat Kozok, Bloomberg.com, "Reports that Turkey’s Deputy PM Quit Are Only Allegations, Erdogan Aide Says," 5 Apr. 2018 An Opportunity Zone helps developers depreciate their assets to make profits in the first few years of making their large investments without having to pay taxes. — Jacob Mcadams, Houston Chronicle, "Cleveland council OKs reclassification of property for industrial use," 26 Mar. 2018 The country is facing double-digit inflation, a depreciating currency and slow growth. — Jacqueline Charles, miamiherald, "Haiti’s low fuel prices unfairly benefit the rich and need to be raised, IMF says," 12 July 2018 In the currency market, the Chinese yuan continued to depreciate, falling another 0.5% against the U.S. dollar. — Mike Bird, WSJ, "One Asian Stock Market is Resisting the Trade War Selloff," 26 June 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'depreciate.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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Dictionary Entries near depreciate

depreciation accounting

depreciation charge

depreciation insurance

Statistics for depreciate

Last Updated

9 Oct 2018

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The first known use of depreciate was in the 15th century

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More Definitions for depreciate

depreciation

noun

Financial Definition of depreciation

What It Is

Depreciation is a term used for tax and accounting purposes that describes the method a company uses to account for the declining value of its assets.

How It Works

An asset acquired in 2005 is unlikely to be worth the same amount five years later; most of the time, the asset will have worn down, been depleted, or become obsolete.

While there are many ways to calculate depreciation, the most basic is the "straight line" method. Under this method, the depreciation of a given asset is evenly divided over its useful lifetime. The method entails dividing the cost of the asset (minus its salvage value) by its estimated useful life.

For example, let's say Company XYZ bought a machine that helps them produce widgets. The machine cost $30,000 and is expected to last 10 years. It's "salvage value" (the amount the machine is worth after 10 years of use) is $3,000. In this particular case, Company XYZ would take a non-cash charge of $2,700 per year to account for the asset's annual depreciation [($30,000 - 3,000) / 10 = $2,700].

Why It Matters

Neither depreciation (or its related concept, amortization) will directly affect the cash flow of a company as it is a non-cash expense. The company is not spending money as a result of an assets depreciation, it just wouldn't be worth as much should the company be liquidated.

As most assets age, they decline in value. Depreciation is a term used for tax and accounting purposes that describes the method that a company uses to account for the declining value of its fixed assets (or tangible assets that have an estimated useful life of one year or longer). Several different methods are commonly used to account for depreciation. These include:

Straight Line: Using this method, the depreciation of a given asset is evenly divided over its useful lifetime. The method entails dividing the cost of the asset (minus its salvage value) by its estimated useful life. For example, let's say a fixed asset costs $30,000, is expected to last 10 years, and its "salvage value" is $3,000. In this particular case, a company would take a non-cash charge of $2,700 per year to account for the asset's annual depreciation. ($30,000 -3,000) / 10 = $2,700
Accelerated Depreciation: Using this method, the greatest depreciation deductions occur in the first years after an asset is purchased.
Capitalized: Using this method, a particular asset is never depreciated.
Expensed: Using this method of depreciation, the asset is fully depreciated in the first year.
150% Declining Balance: This method of depreciation uses 150% of the straight-line value for the first year. The same percentage is then applied to the residual balance each subsequent year.
Double Declining Balance: This method uses twice the straight-line percentage for the first year. The same percentage is then applied to the balance each subsequent year.

Source: Investing Answers

depreciate

verb