depreciation

noun

di-ˌprē-shē-ˈā-shən 

1

: the act of making a person or thing seem less valuable : the act of depreciating

depreciation of the role of art in school

2

: a decrease in the value of something (as due to deterioration or obsolescence)

specifically : a decrease in the value of property (such as machinery) for the purpose of taxation that is carried as a yearly charge amortizing the original cost over the useful life of the property

Examples of depreciation in a Sentence

Recent Examples on the Web

Most homeowners’ and renters’ insurance policies include personal property coverage at actual cash value (ACV), which encompasses the replacement cost minus depreciation. —Tribune News Service, Baltimore Sun, 4 Mar. 2026

This dramatic depreciation reflects investor skepticism about the company’s long-term prospects. —Los Angeles Times, 3 Mar. 2026

The current tax code, with its low rates on capital income and accelerated depreciation schedules, pushes businesses in the first direction. —John Cassidy, New Yorker, 2 Mar. 2026

The proposal would eliminate tax breaks for corporations that own more than 50 single-family homes, barring them from taking deductions for depreciation and mortgage interest payments. —Megan Cerullo, CBS News, 27 Feb. 2026

There are four major costs of car ownership in 2026 aside from depreciation costs. —Charles Singh, USA Today, 27 Feb. 2026

That should quiet depreciation worries. —Jim Cramer, CNBC, 27 Feb. 2026

In work terms, humility isn’t self depreciation. —Adam Dietz, Big Think, 24 Feb. 2026

Growth in earnings before interest, taxes, depreciation and amortization (Ebitda) among companies that have issued private debt is in decline, largely because the number of high-growth companies is in decline, lowering the average level of profitability across the index. —Jim Edwards, Fortune, 22 Feb. 2026

Word History

First Known Use

1744, in the meaning defined at sense 2

Rhymes for depreciation

• abdication
• aberration
• abjuration
• abnegation
• abrogation
• acceptation
• acclamation
• acclimation
• accusation
• activation
• actuation
• acylation

Kids Definition

depreciation

noun

de·​pre·​ci·​a·​tion

di-ˌprē-shē-ˈā-shən

1

: a decline in the purchasing power or exchange value of money

2

: the act of making a person or a thing seem little or unimportant : disparagement

3

: a decline (as from age or wear and tear) in the value of something

Legal Definition

depreciation

noun

de·​pre·​ci·​a·​tion di-ˌprē-shē-ˈā-shən 

1

: any decrease in the value of property (as machinery) for the purpose of taxation that cannot be offset by current repairs and is carried on company books as a yearly charge amortizing the original cost over the useful life of the property

— accelerated depreciation

: the depreciation of property that was put into use prior to 1980 which is allowed at a faster rate than normal under the depreciation rules in force before the adoption of the Accelerated Cost Recovery System

— straight-line depreciation

: depreciation of an asset by a fixed percentage of its original cost based on its estimated life

2

: a loss in the value of property due to physical deterioration and wear or to obsolescence and lack of adaptability