Depreciable Property

Depreciable property refers to assets that a business owns and uses to generate income, which lose value over time due to wear and tear, age, or obsolescence. Common examples include machinery, vehicles, and buildings. In accounting and tax contexts, businesses can deduct the depreciation of these assets from their taxable income, reflecting their decreasing value. This deduction helps businesses account for the loss in value and provides a more accurate financial picture, facilitating better financial planning and management.