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 propertyb : 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
: to fall in value advised us to sell the stock before it depreciates
depreciableplay \-shə-bəl\ adjective
depreciatinglyplay \-shē-ˌā-tiŋ-lē\ adverb
depreciationplay \-ˌprē-shē-ˈā-shən\ noun
depreciativeplay \-ˈprē-shə-tiv, -shē-ˌā-tiv\ adjective
depreciatorplay \-shē-ˌā-tər\ noun
depreciatoryplay \-shə-ˌtȯr-ē\ adjective
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 of depreciate from the Web
While Haiti welcomed a new president in February, living conditions continue to be difficult in the country, where the cost of living has been rising and the local currency has depreciated.
Black Book data show that from 2011 to 2015, a used car 2 to 6 years old depreciated 10 to 13% each year, on average.
The border adjustment tax is a cash-flow tax in which corporations could deduct business expenses immediately instead of depreciating them over time.
Our games have seemed to depreciate from the honorable to the flexible, so that drugs and abuse and fraud and dishonesty are all part of the greater landscape.
While past regulatory shifts -- especially pricking a stock bubble and letting the yuan depreciate in 2015 -- have sometimes spooked international investors, this time around the reaction has been muted.
Some consider manipulation to mean any government intervention in the market at all, not just depreciating currency, Setser said.
But now, China is selling foreign currency to prop up its own in an effort to prevent the yuan from depreciating further and destabilizing the Chinese and global economy.
In most states, a mobile home is taxed as a vehicle and therefore depreciates over time—but when the owner buys the land it stands on, it becomes a home with value that can appreciate, according to TIME.
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.
Synonym Discussion of depreciate
Financial Definition of DEPRECIATE
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.
DEPRECIATE Defined for English Language Learners
Definition of depreciate for English Language Learners
: to cause (something) to have a lower price or value
: to decrease in value
: to describe (something) as having little value
DEPRECIATE Defined for Kids
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