What criteria must be met for a betterment or depreciation deduction?

The appropriate criteria for justifying a betterment or depreciation deduction is the percentage of use already accrued. This means that when calculating depreciation, it is crucial to take into account how much the vehicle has already been used prior to the damage or prior to repairs being made. A deduction is generally applied to account for the pre-existing wear and tear on the vehicle, which reflects the idea that not all repairs will restore the vehicle to a "like new" condition, given its previous use.

By incorporating the percentage of accrued use into the evaluation, appraisers can ensure that the deductions are fair and align with the actual condition of the vehicle. This approach also helps to avoid unfairly penalizing the vehicle owner, as it acknowledges that some of the depreciation occurred as a natural result of regular use rather than as a consequence of the damage itself.

In contrast, other criteria, such as vehicle color or estimated repair times, do not inherently relate to the economic value lost due to prior use. Similarly, subjectivity based on the age of the vehicle does not provide a clear or consistent basis for determining depreciation, as the condition and amount of prior use are far more relevant factors in evaluating betterment or depreciation deductions.