Arizona Real Estate License Practice Exam

Question: 1 / 1505

Which of the following would NOT suffer from depreciation?

An abandoned building

A residential property used as a rental

Unimproved land

Unimproved land would not suffer from depreciation because it does not have any physical improvements or structures that can deteriorate over time. Depreciation typically applies to properties that have buildings or other types of improvements that can experience wear and tear, become outdated, or lose value for various reasons.

In contrast, abandoned buildings can deteriorate and thus lose value, as can residential rental properties that may face increased maintenance costs or changes in the market that diminish their worth. A commercial building, regardless of its size, is also subject to depreciation due to potential wear and tear and market fluctuations. Unimproved land, however, is often viewed as a stable asset that can maintain or even appreciate in value over time due to factors such as location and demand, making it immune to the typical depreciation seen with developed properties.

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A 2,700 sq ft. commercial building

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