Depreciation

A decrease in a property’s value

Your home can lose value over time due to any number of reasons, such as poor condition, an over supply of homes in the market, or a declining neighborhood. If you buy a house for $100,000 and sell it two years later for $90,000, your home has depreciated by $10,000. Unless it’s a rental property, you don’t get any tax deductions on this loss.

Compare: Appreciation