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

The Albanian Manufacturing Association warned this week that nearly 150 garment factories have closed and roughly 25,000 jobs have been lost in recent years amid declining exports, high production costs, labor shortages and the euro’s depreciation. — Jasmin Malik Chua, Footwear News, 9 Oct. 2026

Corporations also benefit from the One Big Beautiful Bill Act with their tax rates decreasing from 35% to 21% and even down to 15% when depreciation deductions were added. — Dr. Michael Good, Hartford Courant, 28 Sep. 2026

Lee notes that Microsoft, for example, has taken steps to lessen its near-term accounting obligations by extending depreciation schedules. — Allie Garfinkle, Fortune, 28 Sep. 2026

Conway estimated the deal to be over $100 million less valuable for the city after his questions revealed a pledge by Stonepeak to share 5% of revenues would be weakened by the new owner’s ability to write off interest costs and depreciation. — Jake Sheridan, Chicago Tribune, 24 Sep. 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