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 \ di-ˈprē-shə-bəl

\ adjective

depreciatingly \ di-ˈprē-shē-ˌā-tiŋ-lē

\ adverb

depreciation \ di-ˌprē-shē-ˈā-shən

\ noun

depreciative \ di-ˈprē-shə-tiv

, -shē-ˌā-tiv \ adjective

depreciator \ di-ˈprē-shē-ˌā-tər

\ noun

depreciatory \ di-ˈprē-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

Crucially, in a provision called full expensing, the law let companies deduct many capital costs immediately instead of depreciating them over time. — Theo Francis, WSJ, "One Year Later, Benefits From Corporate Tax Cut Seem Muted," 22 Dec. 2018 India relies heavily on oil imports, and Brent crude is near four-year highs—a level made more painful by a depreciating currency that has weakened the country’s purchasing power. — Joanne Chiu, WSJ, "Shadow-Banking Blowup Takes Shine off Indian Shares," 4 Oct. 2018 Iran’s currency, the rial, has depreciated rapidly since then, making prices for groceries and clothes skyrocket. — Mohammad Nasiri, The Seattle Times, "Iran’s revolutionaries have mixed feelings, 40 years later," 4 Feb. 2019 Among the most prominent is an error forcing retailers and restaurants to depreciate some renovations over 39 years instead of taking the immediate deduction Congress intended. — Richard Rubin, WSJ, "Leftover Tax Provisions Sit on Congress’s Post-Thanksgiving Plate," 23 Nov. 2018 On the other hand, an accountant computing profits will treat the factory as an asset that depreciates over many years. — Timothy B. Lee, Ars Technica, "Why almost everyone was wrong about Tesla’s cash flow situation," 26 Oct. 2018 During 2017 the dollar depreciated by 7% against a basket of other currencies, as global trade flows surged by 4.5%. — The Economist, "Trade and the dollarNew research suggests the dollar’s level drives world trade," 1 Mar. 2018 One of the most significant errors requires restaurants and retailers to depreciate renovation costs over 39 years instead of deducting them immediately. — Richard Rubin, WSJ, "House Republicans Recast Tax Bill, Seeking New Momentum," 10 Dec. 2018 Unlike real estate or blue-chip art, which can rapidly appreciate in value, superyachts tend to depreciate, and most owners lose money on resale. — Gaby Del Valle, Vox, "What are rich people buying now? Superyachts, apparently.," 8 Nov. 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

22 May 2019

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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