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i hate accounting, so please help me to understand tax shield
thanks
cbd
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∙ 16y ago
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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
how to record capital lease entry?
Journal entry to record capital lease in books of accounts: [Debit] Asset under finance lease xxxx [Credit] Liability under finance lease xxxx And after that asset will be adjusted against depreciation while liability will be adjusted against lease payment till the end of term.
When is a capital lease a better alternative than an operating lease?
It depends on your business needs. A capital lease allows you to carry an item on your books as if you own it, so any of the reasons for ownership would qualify. One good reason for opting for a capital lease is that at the end of the term, you may purchase the item for little more than what you've already invested. This is good, if the equipment is well-maintained and could last well beyond its useful life. I have to qualify the answer, though, because I am not sure if you are talking FAS13 definition of capital lease for financial reporting purposes or what some people call capital lease under the Internal Revenue Code (also known as conditional sale).
Which lease does not permit capitalization?
Operating lease is type of lease under which company only requires to pay rental payments for usage of the asset and custody remains under company but ownership to that asset do not remains to company that's why cannot capitalize in balance sheet as asset of company.
How do you calculate purchase consideration under net asset method?
under NET ASSET VALUE method all the ASSETS-LIABILITIES we need to calculate
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
Can you Sell a house under a lease?
The owner can sell a house under a lease, but the buyer must either honor the terms of the lease or make an offer to get the tenant to break the lease.
How do you book a fixed asset that is a lease?
[Debit] Asset Under finance lease xxxx [Credit] Liability Under finance lease xxxx
how to record capital lease entry?
Journal entry to record capital lease in books of accounts: [Debit] Asset under finance lease xxxx [Credit] Liability under finance lease xxxx And after that asset will be adjusted against depreciation while liability will be adjusted against lease payment till the end of term.
How do you get out of a lease when it is in your uncles name?
If your name is not on the lease, you are not under contract with the landlord so you don't have to "get out" of anything. YAY!
Can lease be broken when you have a change in income?
It depends on the text of the lease, but probably not. You're probably stuck with the same lease buy out provisions as you would under any other circumstances. Read your lease.
Can you break a lease on a new vehicle if the vehicle has not yet been delivered to you?
What are the terms of the lease? Does the lease indicate anything about delivery date? Were they required under the lease to deliver by a certain day? If so, and the day has passed, perhaps they have broken the lease.
When real estate under an estate for years is sold what happens to the lease?
lease is subject to termination with proper notice
Is your wife covered under Blue Shield and Medicare if you die?
Is ones spouse covered under Medicare and Blue Shield when the primary carrier dies.
Under common law if the lessee assigned the lease what would happen?
(in the US) Contract law is quire clear and is not administered under "common" law. If the lease prohibits the lease from being "assigned" then it is not legally assignable. If there is no prohibition against it then it is legally permissable.
Can landlord deny section 8 if already in a lease?
It depends on the state. In California, a landlord has no obligation to rent under Section 8. If you are saying you are currently in a lease and you want to continue renting but under a Section 8 lease, it would again depend on the state.
Can a 16yr. old lease a car with a co signer?
Currently no one under 25 can lease a car anywhere in the united states.
