Assets that cannot be depreciated are those that do not lose their value over time or are not currently being used to produce income. Here are some examples of assets that cannot be depreciate:
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Land: Land is not subject to depreciation since it has an unlimited useful life. However, if the cost of land includes any costs incurred for site dismantlement and/or restoration, then these costs can be depreciated over the period over which any resulting benefits are obtained.
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Current assets: Current assets, such as accounts receivable and inventory, are not depreciated since they are assumed to be converted to cash within a short period of time, typically within one year.
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Investments: Investments in stocks, bonds, and mutual funds cannot be subject to depreciation since they are considered capital investments, which are not subject to wear and tear.
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Personal property: Personal property, such as clothing, home, and car, cannot be depreciated.
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Collectibles: Collectibles such as memorabilia, art, and coins cannot be depreciated.
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Property used for personal uses: Property used for personal uses, such as a personal residence, cannot be depreciated.
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Inventories: Inventories cannot be depreciated since they are considered current assets.
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Assets retained for investment purposes: Assets retained for investment purposes cannot be depreciated since they are considered capital investments.
