Property Valuation
Depreciation in the cost approach to real estate valuation refers to:
ALoss in value from any cause✓ Correct
BThe IRS schedule for tax deductions on investment property
CPhysical deterioration only
DIncrease in property taxes
Explanation
In appraisal, depreciation is loss in value from any cause: physical deterioration, functional obsolescence, or external (economic) obsolescence.
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