Incurrable depreciation is best described as

• A. Depreciation fully recoverable after renovation
• B. Depreciation due to wear that is easily repaired
• C. Depreciation that is negligible
• D. Depreciation where repair costs exceed the value increase

Answer: (D)

Incurrable depreciation is the part of a property’s depreciation that cannot be removed by repairs in a cost-effective way. In this case, the money needed to fix the issue would not be recovered through an increase in value; repair costs exceed the value the repairs would add. So the depreciation remains because fixing it isn’t economical.

For example, if repairing a defect costs more than the additional value such repairs would create, the depreciation is incurable. This contrasts with situations where repairs would add enough value to justify the cost (those would be curable depreciation) or where the issue barely affects value (negligible depreciation).