What is the term that reflects the return of investment in a wasting asset?

The term that reflects the return on investment in a wasting asset is recapture. This concept is particularly relevant in real estate and personal property where the asset is expected to depreciate over time due to physical deterioration or obsolescence.

Recapture specifically refers to the process of recovering the initial investment in an asset that has declined in value. This can occur through mechanisms such as tax advantages, sales proceeds, or depreciation recapture when an asset is sold. In essence, it highlights the idea that even assets that are assumed to lose value have potential ways for investors to reclaim some of their initial investment.

In the context of wasting assets, which diminish over time, recognizing recapture allows appraisers and investors to understand better how to assess the recovery of their investment even as the asset itself declines in utility or value. This distinction is crucial for making informed financial decisions related to investment strategies, taxes, and overall asset management.