Nev. Rev. Stat. § 361.229 — Adjustment of actual age of improvements in computation of depreciation

NRS  361.229    Adjustment of actual age of improvements in computation of
depreciation.
1.  The actual age of each improvement made
on a parcel of land must be adjusted, for the purpose of computing
depreciation, when any addition is made or replacement is made whose cost,
added to the cost of any prior replacements, is at least 10 percent of the cost
of replacement of the improvement after the work is done. For the purposes of
this section, “replacement” does not include changing or adding finish or
covering to floors or walls, changing or adding small appliances, or other
normal maintenance of the improvement in a good condition.
2.  Except as otherwise provided in
subsection 3, the amount of the reduction must be the product of the prior
actual age multiplied by the ratio of the cost of the replacement or addition
to the cost of replacement of the improvement after the work is done.
3.  The amount of the reduction for
additions which increase the floor area of the improvement may be calculated by
multiplying the prior actual age of the improvement by the ratio of the number
of square feet of additional floor area to the total number of square feet of
the improvement including the addition.