Depreciate Legal Meaning and Definition

Here is a simplified definition of the legal term Depreciate.

Depreciate (verb)

1. In accounting, to gradually decrease the recorded cost of a fixed asset in the balance sheet due to wear and tear, obsolescence, or age. It represents the process of allocating the cost of an asset over its useful life.
2. To reduce the value or price of something over time.

Example Sentence: The value of a brand-new car starts to depreciate the moment it's driven off the lot.