Useful Life


Definition of "Useful life"

Dave Jackley . . . exactly!
Dave Jackley . . . exactly! Berkshire Hathaway HomeServices The Preferred Realty

Usual operating service life of property for the purpose it was acquired. The useful life used for depreciation accounting does not necessarily coincide with the actual physical life or any commonly recognized economic life. An example is a building that can be used for 30 years.

Have a question or comment? We're here to help.

 
 
 
*** Your email address will remain confidential.
 
 

Search Real Estate Terms

 

Popular Real Estate Terms

Sum-of-the-years

Accelerated depreciation method in which the amounts recognized in the early years of the property's useful life are greater than those recognized in ...

Straight-line Depreciation

The depreciation method where an equal amount of depreciation expense is allocated to each full period of the asset's useful life. The amount of depre ...

Straight-line Recapture Rate

Capitalization rate used to convert the expected income derived from a property into its estimated asset value. The estimated asset value may be compu ...

Patent

Exclusive right granted by the government to a company or person to use, manufacture, and sell a product or process for a 17-year period without inter ...

Age-life Depreciation

Depreciation method based on the anticipated useful life of the property, allowing for normal wear and tear. ...

Straight Line Rule

Method of depreciating an asset in which its useful life is divided into an appropriate number of years (or other periods), the final salvage value is ...

Popular Real Estate FAQ

What Is A Treasury Index?

A treasury index is an index used to determine interest-rate changes for certain adjustable-rate mortgages (ARMs). This index is based on the results ...

What Is A Proration?

A proration is the division of certain fees. If the sellers have paid the taxes six months in advance, for example, they may want a portion of that pa ...

What Is A Loan-to-value (LTD) Ratio?

A loan-to-value ratio is used by lenders to state how much you have financed. If you put down 20 percent on a purchase, you finance 80 percent and hav ...

Why Do People Refinance?

People finance to obtain a new loan in order to pay off the existing mortgage or to gain access to the existing equity in the home. ...

What Is A Buildable Acre?

A Buildable acre consists of 43,560 square feet of residentially designated buildable land, after excluding present and future rights-of-way, restrict ...

I Looked At A Property Yesterday With A REALTOR® Who Seems To Be Clueless. I Am Really Interested In Purchasing The Property, Though. Can I Switch Agents And Still Make The Purchase?

If you truly want to purchase that property, the only ethical thing to do is to purchase it through that REALTOR. Otherwise, you could set up potenti ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

Down Payment: Everything You Wanted to Know Luxury Real Estate Forecast Furnished Rental Tips for Real Estate Investors How to Buy a House Quickly What is a Credit Score and How Does it Impact Real Estate?

FAQ

What if they no longer make my specific computer? What is a qualifying ratio? What is a loan-to-value (LTD) ratio? What is zoning? What is an interest rate?