Depreciation

How it is used

Investors and accountants use the tax meaning: buildings can be depreciated, but land cannot. In everyday speech it means losing value, the opposite of appreciation. The rules on property depreciation differ from country to country.

Example sentences

1. Depreciation on the building reduced the company's taxable income.

2. Older office buildings can suffer depreciation if they don't meet modern standards.

Common collocations

• depreciation expense
• claim depreciation
• straight-line depreciation
• depreciation schedule

Related terms

• appreciateOf a property or other asset, to increase in value over time because of demand, location or improvements.
• capital gains taxA tax on the profit made when you sell an asset, such as a property, for more than you paid for it.
• net operating incomeA property's yearly income from rent and other sources minus its operating costs, before mortgage payments and income tax are taken off.
• market valueThe price a property would most likely sell for on the open market, between a willing buyer and a willing seller who both know the relevant facts.

This word in other fields

The same English word can have a different meaning in another field:

• depreciation · International Trade
• depreciation · Economics
• depreciation · Finance & Banking
• depreciation · Accounting & Tax

More terms: Fees, Costs & Taxes

• commission
• property tax
• closing costs
• stamp duty
• service charge
• transfer tax