What is Depreciation (Real Estate)? | REAL-ESTATE-SALESPERSON Exam Prep

Depreciation in real estate has two meanings: for tax purposes, it is the annual deduction for the cost of investment property over time (27.5 years residential, 39 years commercial); for appraisal, it is the loss in value due to physical, functional, or external obsolescence. 📚 Learn more about Depreciation (Real Estate) and other key terms for your REAL-ESTATE-SALESPERSON exam at Open Exam Prep. 🎯 This term appears on: REAL-ESTATE-SALESPERSON 🔗 Full glossary: https://www.open-exam-prep.com/glossary 🔗 Depreciation (Real Estate) definition: https://www.open-exam-prep.com/glossary/depreciation-real-estate 💡 Exam Tip: Physical = wear/tear. Functional = outdated. External = outside factors (ALWAYS incurable). Tax: Residential 27.5 yrs, Commercial 39 yrs. Land is NOT depreciable! --- #real-estate #examprep #financeexam #real-estate-salesperson