Depreciation Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Depreciation, written in plain English, along with examples of how it is used.

What is Depreciation?

n. The loss of value of an asset over time through deterioration despite the fact that the item may retain its value or even increase its value due to inflation. Depreciation can be used by businesses as an income tax reduction that is spread out over the life of the asset or an accelerated rate in the early years of use.