§ 24349(b). Tangible Property.

Source: https://govt.westlaw.com/calregs/Document/IFF1B2AC34C8311EC89E5000D3A7C4BC3?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)

The depreciation allowance in the case of tangible property applies only to that part of the property which is subject to wear and tear, to decay or decline from natural causes, to exhaustion, and to obsolescence. The allowance does not apply to inventories or stock in trade, or to land apart from the improvements or physical development added to it. The allowance does not apply to natural resources which are subject to the allowance for depletion provided in Chapter 14.

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• This regulation is similar to Section 26 CFR 1.167(a)-2.