Must depreciable assets be sold once their defined useful life ends according to IRS rules?

Depreciable assets do not need to be sold when their defined useful life ends, according to IRS rules. The concept of a "useful life" is primarily for determining depreciation for tax purposes, not for dictating when an asset must be disposed of. Businesses can continue to use the asset beyond its useful life for operational purposes or even retain it for other financial strategies.

It's also important to recognize that the IRS allows for the depreciation of an asset reflective of its expected utility over time, even if the asset is still operational post its useful life. This means assets can continue generating revenue without requiring immediate disposal once the depreciation schedule concludes.

This allows businesses flexibility in asset management, as they can keep using equipment or property effectively beyond their depreciable life while managing their finances based on the context and value the asset still provides, rather than being forced to sell it.