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

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

On the other hand, higher Fed rates typically bolster the attractiveness of dollar assets, exerting depreciation pressure on local currencies. — CNBC, 17 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