What does depreciable mean?
Depreciable is an adjective used chiefly in accounting, taxation, and finance to describe an asset whose value can be written down, or depreciated, over its useful life rather than being expensed all at once. Buildings, vehicles, machinery, computers, and office furniture are typically depreciable assets, while land, which does not wear out in an accounting sense, generally is not. The word carries no emotional connotation; it belongs to formal, technical registers and appears most often in phrases such as "depreciable asset," "depreciable property," and "depreciable life." Its practical importance lies in taxation: classifying an asset as depreciable determines how its cost is deducted across multiple years, directly affecting a business's reported income and cash flow. Understanding the term helps readers interpret financial statements and tax guidance, where it signals that an item's cost can be spread out systematically rather than claimed immediately.
adjectiveAble to be depreciated; especially of a business asset whose value declines over time and may therefore be deducted gradually for tax purposes.
- (of an asset) able to have its value written down or amortized over time for accounting or tax purposes
- (more generally) subject to decline in value through wear, age, or obsolescence
"The company classified the delivery vans as depreciable assets, spreading their cost over ten years."
"Machinery is generally a depreciable asset under most tax codes."
"Because goodwill is not considered depreciable, it cannot be written down annually like equipment."
Land usually isn't depreciable — but a building sitting on it almost always is, which is why accountants treat dirt and bricks so differently.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of depreciable
Depreciable derives from the verb depreciate, which entered English from Latin depretiare, formed from de- ("down") and pretium ("price"). The Latin root pretium, meaning price or value, also gives us words such as precious, appreciate, and appraise. The adjective form, marking capacity for depreciation, developed within commercial and legal English alongside modern accounting practice.
Related word forms
How depreciable is actually used
Primarily a technical term of accounting, taxation, and finance; rare in everyday speech. In formal tax contexts (especially US usage) it appears frequently in phrases such as "depreciable asset," "depreciable basis," and "depreciable property."
Easily confused with depreciable
Depreciative/deprecative relates to expressing disapproval, while depreciable means capable of declining in monetary value.