depreciate

verb de·pre·ci·ate \ di-ˈprē-shē-ˌāt \

|Updated on: 14 Aug 2018

Tip: Synonym Guide

Examples: depreciate in a Sentence

Definition of depreciate

depreciated; depreciating

transitive verb

1 : to lower in honor or esteem

often depreciates the importance of her work

2 a : 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

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depreciable

play \-shə-bəl\ adjective

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depreciatingly

play \-shē-ˌā-tiŋ-lē\ adverb

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depreciation

play \-ˌprē-shē-ˈā-shən\ noun

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depreciative

play \-ˈprē-shə-tiv, -shē-ˌā-tiv\ adjective

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depreciator

play \-shē-ˌā-tər\ noun

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depreciatory

play \-shə-ˌtȯr-ē\ adjective

See depreciate defined for English-language learners

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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

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
Taken to an extreme, political favor can become a corporate asset, one that easily depreciates in value.

— sendhil mullainathan, New York Times, "When the President Takes On Amazon, Nobody Wins," 18 May 2018
If your roof is 10 years old, for example, it would be depreciated by 10 years.

— ron hurtibise, Sun-Sentinel.com, "Do you have enough homeowner insurance? Here's how to find out," 13 July 2018
Under the old law, the buyer could charge only rates sufficient to pay for the municipal utility’s depreciated construction costs.

— andrew maykuth, Philly.com, "Pa. approves Aqua's contentious $75M sewer system acquisition," 12 July 2018
Instead, as written, White Castle and other companies must depreciate building-renovation costs over 39 years—a less favorable rule than existed before Congress changed the law.

— richard rubin, WSJ, "Four Words Missing in the New Tax Law Give Restaurants Heartburn," 10 July 2018
And until executives like Saunders — the people who have the power to make sweeping, significant changes — acknowledge that, the sport will only continue to depreciate in the greater American sports landscape.

— brendan marks, charlotteobserver, "Blaming NASCAR's young drivers for attendance issues just a sign of a greater problem," 6 July 2018
The Italian outfit are known to invest in young and upcoming players who can generate a profit further down the line, and Benzema's value will only depreciate as the years goes by.

— SI.com, "Carlo Ancelotti Eyeing Reunion With Real Madrid Star as Italian Seeks European Glory With Napoli," 30 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.

Origin and Etymology of depreciate

Middle English, from Late Latin depretiatus, past participle of depretiare, from Latin de- + pretium price — more at price

NEW! Time Traveler

First Known Use: 15th century

in the meaning defined at transitive sense 1

See Words from the same year

depreciate Synonyms

Phrases

dump on;

Synonym Discussion of 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

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer

Financial Definition of DEPRECIATE

depreciation

noun

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