Wasting Asset | Propertylogy

Wasting Asset

By on October 7, 2018

A wasting asset is an asset which losing it’s value over time due to depletion, obsolescence, deterioration, etc.

It does not necessarily refer to real estate as it is a term widely used to describe assets such as gas, oil, minerals underground, or even timber on land.

Improvements made on land which includes a house or building built on it are wasting assets.

However in this scenario, the land is not a wasting asset by definition as it will continue to hold value long into the future.

There are income tax depletion deductions that owners of wasting assets could be eligible for.

So it you have them in possession, do check with a qualified accountant when doing tax planning.

Support us on Patreon

You May Also Like...

hair1 eye1 abs1
View the latest and lowest Singapore Home Loan rates
Why friends look forward to your FAILURE
Hiring a competent agent
Best EVER excuses for being late to work

Investors and homeowners receive our newsletters. Subscribe to our list.

Get More Real Estate Knowledge & Insights From Our Newsletters

Enter your email below

Send this to a friend