Eli5: Why do a depreciating asset increase in the cash flow even though it is an expense?

Question

Eli5: Why do a depreciating asset increase in the cash flow even though it is an expense?

In: 2

Answer 1

If we’re talking about real estate, depreciation and appreciation can happen at the same time, and both are good for the owner.
Depreciation in commercial real estate gives an amount of revenue that is tax free because things need to be replaced and the money has to come from somewhere.