Commercial Real Estate tic.............tic,,, Message Board

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Strategies & Market Trends : Commercial Real Estate tic.............tic,,,

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To: Perspective who wrote (195)	3/15/2009 5:26:44 PM
From: Elroy Jetson	of 442

Actual depreciation is far less than straight-line tax-code depreciation, let alone accelerated depreciation. As with a bridge or a petroleum refinery, the periodic maintenance keeps these buildings in top condition, including a certain degree of functional obsolescence especially when this is cosmetic. When a commercial property is razed, this is almost always the destruction of a fully functional building whose use is being intensified and the basis of the old building is included in the new one. The exception to this are sudden changes, such as a new law relating to asbestos insulation. These are taken as a one-time charge rather than depreciation. .

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