Depreciation
Depreciation is a drop in a property's value over time or from wear. For rentals, it is also a yearly tax deduction. It is the opposite of appreciation.
What Depreciation means
Investors use it to lower the taxable income on a rental. It reflects normal wear on the building. Land itself does not depreciate.
Florida example
A Florida rental may lose value from age or wear. The owner claims depreciation on their taxes. That can reduce what they owe.
What it means
Depreciation is a drop in a property's value over time or from wear. For investors, it is also a tax deduction on rentals.
It is the opposite of appreciation.
Why it matters
Depreciation affects your home's value and, for rentals, your taxes. Investors use it to lower taxable income.
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Verify the details for your own situation against these government and agency sources: CFPB Owning a Home guide and HUD homebuyer resources.