GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Depreciation


Synonyms:deflation, devaluation, loss of value, reduction
Filed Under: financial-banking, insurance, investments, real-estate
Tags: banking, insurance, investment, realty
 

Definition of depreciation

depreciation
1. A decrease or gradual loss in value of a property or item because of age, natural wear, or market conditions.
2. Decrease in the value of a currency in relation to other currencies.

Related Terms and Acronyms:

  • adjusted basis   The amount you use to determine your profit or loss from a sale or exchange of property.
  • book value   The value of a property, item or company as a capital asset based on its cost plus any additions, subtracting depreciation.
  • capital cost allowance (CCA)   Capital Cost Allowance is a method of expensing depreciable assets as defined by the Canadian Income Tax Act (ITA).
  • deflation   An actual decline in the general level of prices in the economy.
  • depression   A prolonged downturn in the economy and level of business activity.
  • effective age   An appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.
  • macroeconomics   A study of the economy as a whole, particularly the interaction of its various components.
  • microeconomics   Looking at the individual parts of the economy, with emphasis given to the market process and how it works.
  • upside-down   A position that consumers find themselves in when the outstanding balance of a loan is higher than the current fair market value of the property purchased with the loan. See also "Depreciation."
  • useful life   The number of years depreciable business property is expected to be productive and in use.

More Related Terms and Acronyms

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