Depreciable Property Law and Legal Definition

Depreciable property means any type of asset used for a trade or business with a functional life of more than one year. Generally, the cost of the asset is spread over its estimated functional life by deducting the proportionate cost annually. The depreciable property includes vehicles, real estate, computers and office equipment, machinery and heavy equipment, and several other categories of assets. Generally, the depreciable property items are long-term assets. There are different depreciation methods adopted to depreciate various classes of property.