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
Cite this Entry
“Depreciation.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/depreciation. Accessed 29 Oct. 2025.
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