What is one criteria for property to be eligible for depreciation?

For property to be eligible for depreciation, it must generate income or be used in a business context. This criterion aligns with the foundational principle of depreciation, which is intended for assets that contribute to business operations or income generation over time.

Depreciation is a tax deduction that allows businesses to allocate the cost of tangible assets over their useful life. This means that the property must be used in a way that supports revenue generation, whether directly through production, service provision, or as part of the business's operational assets.

In contrast, properties that are solely used for personal reasons do not qualify for depreciation as they do not contribute to income generation. Historical significance or holding tangible value does not inherently determine eligibility for depreciation either; the primary consideration is the asset's use in a business context or for income production.