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When selling an asset that has been depreciated is it better to have a big or small capital gain?
JedIrwin
It is not so much up to you. If you sell an asset, the selling price minus your basis is your taxable gain. I guess you could sell it for less, but what would that do for you. People learn that doing things so that you have less taxes, is just taking money out of your pocket. If you sell something at a profit, your taxes will be less that one third of your profit, so in order to reduce your taxes, you have to reduce your income. If you try to sell an asset for less to yourself, a family member, or a friend then the price is not an arms length transaction and if audited, you will pay taxes on the fair market value, pay penalties, interest, and probably will be convicted of tax fraud.
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What asset is not depreciated?
land
Fully depreciated asset?
Is an asset that has equalled its original cost
How do you classify assets?
Tangible assets normally are long term capital assets, but could be short term. Some long term tangible assets can be depreciated while others can not. For example a building or piece of equipment is a tangible long term asset that can be depreciated for financial and tax purposes. Land is also a tangible asset, but can not be depreciated.
When an asset is fully depreciated should the total accumulated depreciation for that asset be zeroed out?
After an asset is fully depreciated, the assets and accumulated depreciation accounts are zerod together in the beginning of the next accounting period. When an asset is fully depreciated but still operates in the company, accountants usually leave the asset and its accumulated depreciation accounts in the records even after it's fully depreciated and even through next periods, just to show that this asset still exists and operates.
Can an asset be depreciated to the point where its value becomes negative?
That can never happen. An asset will either be depreciated to its salvage value, or to zero, depending on whether or not it has a salvage value.
What asset is not depreciated?
land
Fully depreciated asset?
Is an asset that has equalled its original cost
How do you classify assets?
Tangible assets normally are long term capital assets, but could be short term. Some long term tangible assets can be depreciated while others can not. For example a building or piece of equipment is a tangible long term asset that can be depreciated for financial and tax purposes. Land is also a tangible asset, but can not be depreciated.
How do you classify tangible assets?
Tangible assets normally are long term capital assets, but could be short term. Some long term tangible assets can be depreciated while others can not. For example a building or piece of equipment is a tangible long term asset that can be depreciated for financial and tax purposes. Land is also a tangible asset, but can not be depreciated.
When an asset is fully depreciated should the total accumulated depreciation for that asset be zeroed out?
After an asset is fully depreciated, the assets and accumulated depreciation accounts are zerod together in the beginning of the next accounting period. When an asset is fully depreciated but still operates in the company, accountants usually leave the asset and its accumulated depreciation accounts in the records even after it's fully depreciated and even through next periods, just to show that this asset still exists and operates.
Can an asset be depreciated to the point where its value becomes negative?
That can never happen. An asset will either be depreciated to its salvage value, or to zero, depending on whether or not it has a salvage value.
A fixed asset that is not depreciated?
Land is the only fixed asset which is not depreciated because land never depreciates or wear and tear occur rather it always appreciates.
What is the difference between asset write off and asset disposal?
When an asset is damaged beyond repair and you scrap it, you write it off. It may or may not be fully depreciated at that time. If it's not fully depreciated yet, your amt for Fixed assets written off would equal to the net book value. When you write off an asset, you don't get any proceeds for it. When you dispose of an asset by selling it, you'd get some proceeds from the sale and you use this amt to calculate your gain or loss on sale of fixed asset.
Is a copy machine a asset?
Yes. It can also be depreciated on your taxes.
Can goodwill be depreciated?
Not usually as it isnt a waisting asset. But it can be Impaired.
In what circumstances is a capital lease a better alternative to an operating lease and under what circumstances is a clapital lease a better alternative than buying an asset?
1) When you do not need a current tax deduction, a capital works better, you can take depreciation over the term of the lease. 2) You buy a appreciating asset and lease a depreciating asset, A capital lease is better with a depreciating asset. http://www.equipmentleasing101.com
What is the journal entry when you have not fully depreciated as asset that no longer exists?
Debit accumulated depreciationdebit loss on disposalCredit fixed asset
