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Yes assets are depreciated in year of sale upto the sale time in fiscal year of sale. IF asset is sold at start of year then there is no depreciation for that fiscal year.
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Is it IRS regulation to depreciate an asset?
No it is not. Depreciation is actually to give the asset holder a break at tax time by adjusting the value. There are no regulations which require anyone to depreciate an item.
Why fixed assets depreciate?
Fixed assets depreciate because through depreciation process cost of fixed asset charged to all those fiscal years in which that fixed asset is used.
What is ammortisation?
to depreciate the value of an asset by reducing its cost over a period
Why fixed asset are subject to depreciation?
fixed asset does not mean that the value of asset no decrease in future it,s for sure, that,s why we depreciate it annually.....
Which fixed asset their no charge depreciation?
Land is the only fixed asset which has no depreciation charge because land does not depreciate it's value.
If you get cash from a 2nd mortgage loan for a rental property can you add the cash amount to your cost basis and depreciate it even if you use the money for personal use?
No for many reasons. One, you depreciate tangible assets...a loan is not an asset...if you purchased additions to the property, those would be assets you could depreciate. Cash is intangible. If anything, taking money out of a property would decrease your basis, not increase it! You create the depreciable asset by buying it...not the opposite. You understand you have to recapture depreciation at ordinary rates on sale too, don't you?
When an asset is sold a gain occurs when the?
Gain on sale of asset is occured when actual value of asset is less then the sale value of asset.
Which type of depreciation method accelerates depreciation in the early years of an asset's life?
Diminishing value method where you depreciate the asset by a percentage rather than the straight line method where the same amount gets depreciated each year.
How much money does car depreciate when you buy it?
depends on the car, but most depreciate about 30% in the first year.
What is surplus on revaluation of asset?
Surplus on revaluation of assets means that on the even of revaluation, more assets has appreciate in their value then depreciate.
Why plant assets needs to be depreciated?
Plant assets only have a limited usage and in order to calculate the life of an asset, you must depreciate the asset according to it's useful life minus salvage value.
In accounting do you depreciate the installation of a fixed asset?
In accounting the "installation" if you are referring to the cost of having something installed is an expense and is recorded as such, that is an operating expense and is recorded as such. Since it is an expense it is not an actual asset, so can not be depreciated.
