(1) The amount reserved each year in the accounting system for replacement of a building or other asset. (2) The useful life of a property at any given time.
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Book Depreciation
Book Depreciation Depreciation reserved (on the books) by an owner for future replacement or retirement of an asset.
Depreciation (1) Decrease in value to real property improve-ments caused by deterioration or obsolescence. (2) A loss in value as an accounting procedure to use as a deduction for income tax purposes.