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depreciation

depreciation

15 6.3
Loss of value of something like a car as it gets older or wears out
  • noun
  • /dɪˌpriːʃiˈeɪʃən/
  • Specialized
translation icon : depreciación
  • The depreciation of the car's value became evident after just a few years of use.
  • depreciation and amortization
  • depreciation deduction
  • tax depreciation

So here we have a couple exceptions to your depreciation deduction.

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Examples

  • In economics, George Horwich introduced the idea that disasters can lead to an "accelerated depreciation" of outmoded capital stock.

    Academic text (2013)
  • So what is the cash after expenses, before depreciation that you guys have coming in to work with?

  • The second is the depreciation asset value of that asset.

  • So increasing the level of accelerated depreciation is going to raise the level of investment.

  • In addition to the operator cost and machine depreciation, the cost of raw materials used must also be considered.

    Academic text (1996)
  • Over the study period, natural resource depreciation increased at an average rate of 6.4 percent a year.

    Academic text (1992)
  • A big reason for this depreciation is the constant price cuts that manufacturers have made to new cars.

  • And a cost segregation analysis allows you to take a bunch of depreciation in your first year.

  • So because it's three years old, two to three years old, it's already lower on its depreciation curve and that curve is flattening out.

  • A huge issue for early EV adopters has been the extreme depreciation that they've experienced with their cars.

Synonyms

decline
vsdepreciation
439 3.9

A gradual loss in amount, quality, or value

specifically denotes long term loss of monetary value from use or age
deterioration
vsdepreciation
43 5.9

A slow change when something like a building or a person's health becomes worse

is about monetary loss in value rather than general quality worsening
erosion
vsdepreciation
29 4.2

A slow loss of strength, value, or trust

is specifically about asset value loss due to age or obsolescence
wear and tear
vsdepreciation
17 3.0

Slow damage that happens to things like cars or furniture from normal use over time

is an accounting measure of that value loss over time
degeneration
vsdepreciation
8 7.5

A process of becoming worse in condition, quality, or morals

applies to physical asset value loss rather than moral or mental decline
amortization
vsdepreciation
  • Specialized
5 7.2

To reduce a debt or an asset's value little by little with regular payments

is the asset value falling itself rather than the payment process
decline in quality
vsdepreciation
1 3.9

A fall in how good something is over time

focuses on financial value reduction over time rather than quality alone
disvalue
vsdepreciation
8.6

A loss in worth or importance

is the measurable fall in asset value over time, not a moral judgment

Compounds

Profit a company makes before interest, taxes, depreciation and amortization

7.4

An amount taken off profit for tax because a business asset loses value over time

depreciation charge
  • Specialized
6.7

An amount companies record each year as an expense to show equipment loses value

depreciation rate
  • Specialized
5.3

A measure of how quickly things like cars or machines lose value over time, often used for tax

rate of depreciation
  • Specialized
5.1

The percentage by which property or equipment loses value over a period for accounting

A feeling that you are not worth much

tax depreciation
  • Specialized
5.8

An amount a business subtracts from taxes each year for a machine or building

A way of charging the same cost each year for an asset that loses value

How Depreciated

collapse
350 4.1
devaluation
  • Specialized
18 5.5
depreciation
  • Specialized
15 6.3
decline
439 3.9

Surface Forms

depreciation singular
depreciations plural

Morphology

depreciation = depreciate (semi-transparent) = de + preci + ate + ion

For learners who know the verb 'depreciate', adding '-ion' straightforwardly forms the noun for the process or result.

Etymology

Depreciation comes from de- 'down' and the same root as price, meaning 'price' or 'value'. So it literally means a 'fall in price', which is why we use it for an asset losing value over time.