Depreciation Costs?

[neon beach]

I went to the University of Alabama and the University of Houston, majored in Business Management and Marketing

So did the guys from PCO Pest Control, but they were there for a day. Does that make them graduates? Did you graduate?

[blondjuls]

LOL...way to detract from the fact that you cannot argue with me on this because I am right...and gave examples.

Accounting 101...

Ask for your question, I haven't graduated with my extended degree yet, as the double major added 27 extra hours of classes to the curriculum for my degree. I got into the salon and it has delayed my ability to finish school for obvious reasons. I am, however, a senior and WILL finish it before 5 years is up and I lose the 100 hours I have already completed. So, the short answer to your question is no.

But, it has nothing to do with the fact that I passed accounting 101. Which is where the answer to this question can be found.

[neon beach]

Wow! Me too, I haven't grauduated from anything either, but I'm a quadruple major in areo-dynamics, rocket science and Simspontology twice removed.

[blondjuls]

Riiiiiiiiiiiiiiiight.

[neon beach]

Same as you. I didn't graduate from anything, but I rec'd the flyer in the mail!

[blondjuls]

Back to depreciation, nobody cares where you got certified to be a moron at.

[Brian Oshman]

Julie is correct. 5 year depreciation is calculated in that manner. I do the same thing with my vehicles for my business.

[neon beach]

You got the nudes in the email too?

[neon beach]

Over 3 to 5 yrs, you're invesment in, say Ergos of 150K+ will be worthless.

[Brian Oshman]

You got the nudes in the email too?

Yeah, quit sending me pics of your sorry a$$. Disgusting.

[blondjuls]

ROFL

Now that was funny!

[Parrot Head]

You can actually use any method you chose as long as you can justify it to the IRS, why. You have to be careful not to depreciate equipment too fast in order to offset a bottom line profit (who has this?) in any givin year. This causes a red flag. You also have the option of using double declining balance, which gives you more and quicker depreciation in the first, second and third years. Like Brian said, the equipment is worth half when you have it installed. Remember, if you depreciate too fast and then sell that equipment, you have to recapture (claim as income) some of that depreciation which you already deducted. Just a little more accounting 101. PS once you start a method of depreciation, you cannot change it in mid-stream. You have to continue to use the method you started with.