depreciation

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A decrease in an asset’s value caused by unfavorable market conditions
(Read more: http://www.investopedia.com/terms/d/depreciation.asp#ixzz2K1MoFQDj)
For accounting purposes, depreciation indicates how much of an asset’s value has been used up. For tax purposes, businesses can deduct the cost of the tangible assets they purchase as business expenses; however, businesses must depreciate these assets in accordance with IRS rules about how and when the deduction may be taken based on what the asset is and how long it will last.
(Read more: http://www.investopedia.com/terms/d/depreciation.asp#ixzz2K1Mz24v6)

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