What are depreciable assets?

Depreciable assets can be intangible or tangible assets that lose value over time due to wear and tear, becoming obsolete or other contributing factors. Common examples of depreciable assets include:

• Buildings

  This applies to any building or facility an organization owns, such as a factory, plant, or even office. The costs and expenses involved in the upkeep or renovation of the buildings are also associated with them being depreciable assets, as over time they lose their value, due to age and deterioration.

• Machinery and equipment

  Many items can be included in this category. Some common examples are computers, vehicles, and manufacturing equipment and tools. These assets' value can depreciate after becoming obsolete.

• Vehicles

  This includes all types of vehicles - cars, trucks, trains, construction vehicles, planes, or any other vehicle that a company uses as part of its operations. These are depreciable assets due to technology advancing.

• Furniture and fixtures

  This includes all furniture and fixtures a company has at more or several offices or facilities, common examples in this area include desks, chairs, lights, and shelving. These are considered depreciable assets because of the wear and tear they are often subjected to.

• Intangible assets

  Intellectual property can be a wide range of depreciating assets that might include things like patents, copyrights, or rights to any particular piece of property that a company has created or bought the rights to. The value of these items can decrease over time due to legal protections expiring and a variety of other factors.