- 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.
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.