Accrued Depreciation

Accrued depreciation in real estate refers to the reduction in the value of a property over time due to factors such as wear and tear, obsolescence, or changes in market conditions. Unlike depreciation recorded on financial statements for tax purposes, accrued depreciation represents the actual decrease in a property’s value as it ages or becomes less desirable. This concept is crucial for determining the true value of a property and assessing its investment potential or market value accurately.