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
loss of value, devaluation, deflation, reduction

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,
    • A valuation method determined by taking the original cost of an asset and subtracting any depreciation, impairment or amortization costs.
    • 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) 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.
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