Can land be depreciated? No, land cannot be depreciated. Depreciation is a method used to allocate the cost of tangible assets, such as buildings, vehicles, machinery, or equipment, over their useful lives. On the other hand, land is considered to have an indefinite useful life and does not wear out or become obsolete in the same way as other assets.
From an accounting perspective, land is considered a non-depreciable asset. Therefore, its value is typically recorded at its historical cost and is not subject to depreciation. However, it’s important to note that improvements made to land, such as buildings or other structures, may need to be revised.
In such cases, the depreciation would apply only to the improvements, not the land itself.
It’s always a good idea to consult with an accountant or financial professional for specific guidance regarding the depreciation of assets in your particular situation.