Normal obsolescence means the anticipated or expected reduction in the value of property that can be foreseen by a reasonable, prudent businessperson when property is acquired and placed into service. In general, it includes the:
Normal obsolescence means the anticipated or expected reduction in the value of business personal property that can be foreseen by a reasonable, prudent businessman when property is acquired and placed into service. In general, it includes the expected, declining value through use, gradual decline in value because of expected technological improvements, the gradual deterioration or obsolescence through the mere passage of time, and the general assumption that such property will have a minimum value at the end of its useful life.
Examples of Normal obsolescence in a sentence
Normal obsolescence as defined in 50 IAC 4.2-9-2 includes reductions in value that can be foreseen by a reasonable, prudent businessman.
Normal obsolescence and abnormal obsolescence are a part of Indiana’s true tax value system for the assessment of personal property.