Definition of "Economic life"

Expected period that property will provide benefits. It is typically less than physical life of the property because the property continues to have physical life regardless of inefficiency and obsolescence. Depreciation is usually based on the economic life.

Comments for Economic Life

Masood Malik Masood Malik said:

How long is Economic life in NY

Aug 10, 2018  18:28:45

 
Real Estate Agent

Hey Masood,
It really depends on the asset in question.

The calculations to assert the economic life of an asset deals with a lot of things, like the amount of time the asset can be used in production and its replacement cost. Not to mention that in big cities like New York, regulations change a lot, and that can also add weight in the economic life of it. So we suggest you talk with a real estate agent and even a real estate lawyer to help figure out your NY asset's specific economic life.

Aug 13, 2018  14:16:47
 
 
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