depreciate

verb
de·​pre·​ci·​ate | \ di-ˈprē-shē-ˌāt How to pronounce depreciate (audio) \
depreciated; depreciating

Definition of depreciate

transitive verb

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

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Other Words from depreciate

depreciable \ di-​ˈprē-​shə-​bəl How to pronounce depreciable (audio) \ adjective
depreciatingly \ di-​ˈprē-​shē-​ˌā-​tiŋ-​lē How to pronounce depreciatingly (audio) \ adverb
depreciation \ di-​ˌprē-​shē-​ˈā-​shən How to pronounce depreciation (audio) \ noun
depreciative \ di-​ˈprē-​shə-​tiv How to pronounce depreciative (audio) , -​shē-​ˌā-​tiv \ adjective
depreciator \ di-​ˈprē-​shē-​ˌā-​tər How to pronounce depreciator (audio) \ noun
depreciatory \ di-​ˈprē-​shə-​ˌtȯr-​ē How to pronounce depreciatory (audio) \ 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 What good were stocks if they were denominated in depreciating dollars? Roger Lowenstein, Washington Post, "How Paul Volcker beat inflation and saved an independent Fed," 10 Dec. 2019 The value of an American handshake is depreciating. John Walcott, Time, "'My Great and Unmatched Wisdom': Trump Ignores Warnings on Syria Retreat, Threatens to 'Destroy' Turkish Economy," 8 Oct. 2019 Sweden’s krona depreciated 0.3% to 10.6792 per euro. Los Angeles Times, "Tech stocks drop, dollar up amid political drama," 25 Sep. 2019 Large corporations would get hit with $2.9 trillion over 10 years from higher taxes, including new levies on overseas profits, and less generous writeoffs for depreciating assets. BostonGlobe.com, "The rest of us, the 99 percent, would pay nothing. No premiums, no copays, no out-of-pocket costs. And no new taxes.," 2 Nov. 2019 Hemant Baijal, co-head of the global debt team at OppenheimerFunds, believes the U.S. currency will depreciate further over the next two or three years as markets continue factoring in normalizing monetary policy around the world. Ira Iosebashvili, WSJ, "Dollar Extends Last Year’s Slide Into 2018," 1 Apr. 2018 This isn’t a time to depreciate Cleveland’s performance, not on a night when the Cavs actually showed a pulse at that end of the floor. Chris Fedor, cleveland, "Cleveland Cavaliers: Is stingy defensive performance in opener a sign of things to come or a one-night deception?," 24 Oct. 2019 In total, China lost $1.28 trillion, and it was forced to tap into its foreign exchange reserves to prevent its currency from rapidly depreciating even further. Laura He, CNN, "Money has been leaving China at a record rate. Beijing is battling to stem the tide," 19 Dec. 2019 Azarenko said that prices haven't changed much in dollar terms since sanctions were imposed in 2014, while the ruble has depreciated by about 50 percent since that time. Alex Sazonov, chicagotribune.com, "Moscow luxury real estate sales are soaring," 25 Sep. 2019

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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First Known Use of depreciate

15th century, in the meaning defined at transitive sense 1

History and Etymology for depreciate

Middle English, from Late Latin depretiatus, past participle of depretiare, from Latin de- + pretium price — more at price entry 1

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Time Traveler for depreciate

Time Traveler

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

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Statistics for depreciate

Last Updated

18 Feb 2020

Cite this Entry

“Depreciate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/depreciate. Accessed 27 Feb. 2020.

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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
How to pronounce depreciate (audio)

English Language Learners Definition of depreciate

: to cause (something) to have a lower price or value
: to decrease in value
formal : to describe (something) as having little value

depreciate

verb
de·​pre·​ci·​ate | \ di-ˈprē-shē-ˌāt How to pronounce depreciate (audio) \
depreciated; depreciating

Kids Definition of depreciate

1 : belittle He often depreciates his own talent.
2 : to lower the price or value of
3 : to lose value New cars depreciate rapidly.

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depreciate

verb
de·​pre·​ci·​ate | \ di-ˈprē-shē-ˌāt How to pronounce depreciate (audio) \
depreciated; depreciating

Legal Definition of depreciate

transitive verb

: to subject to depreciation : lower the value of

intransitive verb

: to fall in value — compare appreciate

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More from Merriam-Webster on depreciate

Thesaurus: All synonyms and antonyms for depreciate

Rhyming Dictionary: Words that rhyme with depreciate

Spanish Central: Translation of depreciate

Nglish: Translation of depreciate for Spanish Speakers

Comments on depreciate

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