depreciate


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Depreciate

To allocate the purchase cost of an asset over its life.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Depreciation

The gradual reduction of an asset's value. It is an expense, but because it is non-cash, it is often effectively a tax write-off; that is, a person or company usually may reduce his/her/its taxable income by the amount of the depreciation on the asset. Because there are many different ways to account depreciation, it often bears only a rough resemblance to the asset's useful life. This may further benefit the company as they may continue to use the asset tax-free after its value has technically depreciated to nothing. See also: Amortization.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

depreciate

To reduce the value of a long-term tangible asset.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Being a psychology and commerce student, I've come up with a conclusion based on the principle that an asset depreciates over time.
Earlier, the central bank let the rupee depreciate a massive 34% since December 2017 to date in a bid to boost sluggish exports and drastically cut imports to narrow down the current account deficit and improve balance of payments situation.
The government has allowed the local currency to depreciate by 1.8%, or Rs2.55, to Rs141.39 against the dollar in the inter-bank market in four weeks since March 8.
For example, a taxpayer who exchanges a machine depreciated under the unit-of-production method for a used machine may depreciate under MACRS the sum of the exchanged basis and excess basis of the used machine (replacement property) as a machine placed in service at the time of replacement.
The court held that HCA could depreciate, over five years, a percentage of the electrical systems, measured by electrical load allocable to hospital equipment, as opposed to general building operation or maintenance.
The Capital Asset Management System-Military Equipment (CAMS-ME) is the system that the P & E Policy Office and the Space and Naval Warfare (SPAWAR) System Center-San Diego have developed to consolidate the average cost of assets, update total program expenditures, depreciate assets over their useful life, and record asset status.
While exotic cars depreciate quickly, they may "fully depreciate" within five years and then remain level for a long period of time.
Stated value policies, however, can still depreciate vessels because they generally require the insurance company to pay up to the stated amount.
This is why the US plays a "strong dollar policy" charade while quietly allowing the currency to depreciate. A Federal Reserve study suggests that the dollar could drop at least another 20 percent.
This analysis provides the independent evaluation required by the IRS to properly depreciate the construction costs over an accelerated schedule, thereby increasing near-term depreciation expense and deferring taxes.
If a company buys $390,000 worth of equipment this year, for example, it can take a $100,000 deduction and depreciate the other $290,000.