Understanding Cost Recovery
Cost recovery is defined as "return of investment in business and income-producing property, pro-rated over its class life"
How is cost of recovery a return of investment, can someone give an example? I understand cost of recovery to be a depreciation over time. It can become an expense to reduce taxes, but I don't understand how it can be a return of investment as it doesn't produce actual cash flow or return. Would really appreciate someone's explanation/example!
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