What do we call an estimate of how long an item of property can be expected to be usable in business?

The correct choice, "useful life," refers to the estimated duration over which an asset is expected to remain functional and contribute to the business operations. This concept is crucial in accounting and taxation, as it influences the calculation of depreciation. When determining depreciation, businesses need to establish how long they can expect to use an asset before it needs to be replaced or has no value. The useful life is typically measured in years and varies depending on the type of asset, its functionality, and how it is utilized within the business.

Understanding the useful life helps businesses plan for future capital expenditures and budget accordingly. It is a key component in financial reporting as it impacts profit margins by determining how quickly the cost of an asset is allocated over time.