Depreciation

Definition

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

Synonyms
devaluation, deflation, reduction, loss of value

Related Terms and Acronyms

• Actual Age — Definition,
  • The years since a structure was built. Differs from effective age.
• Adjusted Basis — Definition,
  • The amount you use to determine your profit or loss from a sale or exchange of property.
• Blue Book — Definition,
  • Formally, it refers to the Kelley Blue Book, an industry guide dealers use to estimate wholesale and retail vehicle pricing.
• Book Value — Definition,
  • The value of a property, item or company as a capital asset based on its cost plus any additions, subtracting depreciation.
  • A valuation method determined by taking the original cost of an asset and subtracting any depreciation, impairment or amortization costs.
• Capital Cost Allowance (CCA) — Acronym, Canada,
  • Capital Cost Allowance is a method of expensing depreciable assets as defined by the Canadian Income Tax Act (ITA).
• Current Market Value (CMV) — Acronym,
  • The estimated price determined by the recent sale of similar properties.
• Deflation — Definition,
  • An actual decline in the general level of prices in the economy.
• Depression — Definition,
  • A prolonged downturn in the economy and level of business activity.
• Effective Age — Definition,
  • 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 — Definition,
  • A study of the economy as a whole, particularly the interaction of its various components.
• Microeconomics — Definition,
  • Looking at the individual parts of the economy, with emphasis given to the market process and how it works.
• Upside-down — Definition,
  • 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 — Definition,
  • The number of years depreciable business property is expected to be productive and in use.