functional depreciation

functional depreciation
As considered in the valuation of property for taxation:–the result of lack of adaptation to function; the result of change of conditions and surroundings which renders the structure ill adapted to the work, especially a growth of business which calls for the substitution of other equipment and structures. Central Railroad Co. v Martin (DC NJ) 30 F Supp 41.

Ballentine's law dictionary. . 1998.

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  • functional depreciation — Such results from necessary replacement of equipment before it is worn out, by reason of invention and improved machinery, equipment, etc. which render more efficient and satisfactory service. See functional obsolescence …   Black's law dictionary

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