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What else can I help you with?
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.
Can you depreciate below the residual value using the declining-balance method?
No, you cannot depreciate an asset below its residual value using the declining-balance method. This method calculates depreciation based on a fixed percentage of the asset's book value each year, but it should stop once the book value reaches the residual value. Continuing to depreciate below this threshold would not accurately reflect the asset's true value.
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.
If Sold land to payoff home capital gains tax?
Yes when you a gain on the sale of a asset you will have to report the sale on your 1040 income tax return and could owe some income after your 1040 income tax return is completed correctly for the year of the sale. At the present time the long term capital gains tax rate on the sale of personal asset (nonbusiness asset) is from the -0- % rate to the maximum 15% rate on the amount of LTCG.
