How is depreciation calculated? How are the life expectancies determined?
Updated
by
Jill Bowers
Each general quote item contains information about its suggested annual depreciation and maximum depreciation. You can view this information by right-clicking on the selected item and then choosing View Item Information. This information is only available if you have selected a category and selector.
The suggested annual depreciation is calculated using the average life expectancy for the item.
Life expectancy is determined by the following sources:
- Joint Military Industry Depreciation Guide (JMIDG)
- The National Association of Home Builders (NAHB)
- US General Services Administration (GSA)