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

For example, recapturing depreciation can still create a tax bill in the year of sale. — Kelly Phillips Erb, Forbes.com, 27 June 2026

Honeywell Aerospace also looks cheap out of the gate, trading at a discount to peer RTX Corporation on an enterprise value-to-EBITDA basis (earnings before interest, taxes, depreciation and amortization). — Jeff Marks, CNBC, 26 June 2026

CapEx is generally recorded as an asset on the balance sheet and recognized gradually on the income statement through depreciation or amortization. — Colin Dodds, Encyclopedia Britannica, 26 June 2026

Instead, Elliott wants to allow the government to be able to pay the lower book value on those assets, or what the utility originally paid, minus depreciation. — John Moritz, Hartford Courant, 20 June 2026

Lawrence has also honed his sense of perspective, even if it’s often masked by self-depreciation. — Mikey O'Connell, HollywoodReporter, 18 June 2026

Adjusted earnings before interest, taxes, depreciation and amortization slipped to $290 million from $304 million. — David Moin, Footwear News, 3 June 2026

One expense this tool doesn't consider is depreciation. — Jeff Brady, NPR, 1 June 2026

The 33% increase over two years came after Democrats in control of state government increased tax rates and reduced the depreciation rate for vehicles. — Alex Derosier, Twin Cities, 31 May 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