Economic Life
Expected period that property will provide benefits. It is typically less than physical life of the property because the property continues to have physical life regardless of inefficiency and obsolescence. Depreciation is usually based on the economic life.
Popular Real Estate Terms
See effective tax rate. ...
Land located next to water that has and will continue to experience water damage. The land generally is not suitable to build a structure on. In some cases, federal or local government may ...
Commercial building having several different uses blending together. For example, retail shops are on the first floor, professional offices are on floors two through ten, and a restaurant ...
Negative characteristics about real property which do not meet the needs of the usual occupant. Examples are inadequate lighting in the rooms and a one-car garage when a two-car garage is ...
The bonus depreciation definition refers to a tax incentive that allows a business to accelerate the depreciation deduction in the year when the asset is purchased and placed into use. The ...
Exposure can have various meanings in real estate and insurance, depending on the context. Let’s have a thorough look at these scenarios! Exposure as property’s ...
An insurance contract or home warranty, usually for one year, covering electrical, plumbing, heating, etc. ...
Choosing alternative real estate investment instruments having different risk-return features. Diversification can be done by regions and types of real estate. Diversification provides a ...
Person receiving la legacy from a will. Normally a legatee will receive personal property possibly including real property. ...
Comments for Economic Life
How long is Economic life in NY
Aug 10, 2018 18:28:45Hey Masood,
It really depends on the asset in question.
The calculations to assert the economic life of an asset deals with a lot of things, like the amount of time the asset can be used in production and its replacement cost. Not to mention that in big cities like New York, regulations change a lot, and that can also add weight in the economic life of it. So we suggest you talk with a real estate agent and even a real estate lawyer to help figure out your NY asset's specific economic life.
Aug 13, 2018 14:16:47Have a question or comment?
We're here to help.