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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.