what is rapid depreciation?
455094
Buy a car for $30,000.\n\nTake it back the next day and try and sell it back to the dealer.\n\nHe'll offer you $20,000.\n\nThats rapid depreciation.
812345
I'm just going off the top of my head here without looking anything up, so just use my answer as a guide and not fact.  (Because staring at the code is factual, but sometimes doesn't get you very far in thought.)\n\nThe rental property.  Chop this up into three components - land, building and personal property.\n\nLand, as you know, is not depreciable.  But it should be listed as a separate component of the sale.  \nThe building is depreciable, but will also be under an additional code section, 1250.\n\nThe general rule starts with section 1231 property.  Then, depending on what it is, it might ALSO be 1245 property or 1250 property.  But just to keep things simple, think 1245 = equipment and 1250=buildings.\n\nBoth 1245 and 1250 pretty much say this: When you sell the asset, the amount over adjusted basis, up to the extent of depreciation taken, is ordinary gain.\n\nFor example.  I bought a piece of equipment a few years back for 10,000.  Tuesday, when I sold it, it had a tax adjusted basis of 1,000 (10,000 historical value less 9,000 of accumulated tax depreciation taken).  I collected 5,000.  In this case, ALL of my 4,000 gain (5,000 sales price less 1,000 adjusted basis) will be ordinary income.  \nLet's say I sold it for 12,000.  9,000 of my gain would be ordinary and 3,000 capital gains.  \nNow I'm babbling.  But in a nutshell, you are recapturing the depreciation expense at ordinary, just like you took the expense (over time).\n1250 for buildings has something similar, but not many have that issue anymore (unless they were purchased over a decade ago or so).  There is some special additional tax on the gain or special rate.\nBut the losses are ordinary, thankfully.\nAnd I feel like I'm getting off track here, but I'm trying.  :)\n\nBut onto the land.  It depends.  And perhaps this is where saying more info is needed might help.\nIf this is a separate piece of land accounted for seperately and Mary can prove that she wasn't going to improve anything, then there might be support for the claim that it is a capital asset and the gains are capital.\nHowever, that would be really agressive to me considering it saysing "holding for future development" and if there has been anything substantial done to the property.\nIn short, you will want to check out code section 1237 for reference too although it doesn't exactly fit your problem.\n\nAnd last but not least, I'll clog this answer with an Explanation nabbed from my own stuff.  Good luck on your research and forgive me for such a lengthy answer.  Usually I hate stuffed answers.  Cheers!\n\nReal property produces capital gain or loss on its sale or exchange if it's a capital asset. The main reasons for the exclusion of real property from the capital asset category are (1) that it's property held by the taxpayer primarily for sale to customers in the ordinary course of his business, and (2) that it's real property used in his business. Code Sec. 1221(a)(1) , Code Sec. 1221(a)(2) . However, the sale or exchange of real property used in a business (including rental realty), or the involuntary conversion of such property or real property that is a capital asset, can produce a Code Sec. 1231 gain or loss. \n\nThe fact that real property is held primarily for sale to customers in the ordinary course of a taxpayer's business precludes it from being either a capital asset or a Code Sec. 1231 asset (business-use property). Code Sec. 1221(a)(1) ; Code Sec. 1231(b)(1)(B) . The factual question of whether real property was so held gave rise to intensive litigation. Cases decided under Code Sec. 1231 are covered as part of the question of what property is used in a business. Decisions delineating property that is a capital asset are covered in this subdivision. The special rules of Code Sec. 1237 , allow taxpayers other than C corporations to obtain limited capital gain as to property subdivided for sale under certain circumstance
284874
negative capital. dr capital, cr cash
689422
dr = debit recorded, cr = credit recorded :)\n\nRival
253072
To sell off or dispose of an investment = divest\n\nTo withdraw you capital from a company = disinvest\n\n\nI have actually never heard someone use disinvest, had to look that one up to see if it existed.
519282
fast moving consumer goods
1149079
In business, when the price of something starts growing (like real estate) rapidly and seemingly beyond what it's real value is. This is called a bubble. Eventually prices get too high and (often spurred by an economic downturn) the "bubble bursts" and prices may stagnate or drift downward. This is what many people are expecting to happen to the real estate market.
757720
commodity is a sure way to make $ quickly but also loose all of it very quickly.  Set up sharebuilder and research and choose a stock of an established company.  put in $500 each time over the next 12 months into that stock ( that's 4 x @ $4 each time). or buy $150 each month over 12 months or even more... as now you've just started the process of investing on very little savings.. Otherwise, set up and scot or etrade and day tray on established companies.
769801
Sure you can... talk to a discount broker. You can also throw your money into your trash can for faster results.
1163530
If the rate of Mexican pesos is expected to depreciate, it will be definitely a boon for the company, provided the same interest rates are applied. However, the banks might also be awar of this, and therefore tweak their rates appropriately. The best solution would be to run a spreadsheet with a variety of interest rates against the projected depreciation and then negotiate the interest rate that will be positive for the company in the long run.
191194
Depreciation expense is necessary to systematically recognize an asset's value (net of ending salvage value) over the useful life of the asset. This is done so that the cost of the asset is recognized over the same period which the revenue the asset generates is recognized. For example, if equipment was purchased that will generate revenue for 10 years, the cost of the equipment should be allocated over those ten years so that it can be matched with the revenue it generates over this same period. If the entire asset were expensed upon acquisiton, it would present a mismatch or revenues and expenses.
674933
Additions,disposals & depreciation.
152569
Pay off the auto loan.  Cars are depreciating assets.  From the day you buy it, the car's value is on its way to zero. Your home is an appreciating asset so you can take more time to pay it off.  Why do you think that auto loans are so short term???  Have you ever seen a 30 year auto loan?? On an average car, if you didn't make any payments on the loan, you would owe more than the car is worth in 1-2 years.\n\nAs a rule of thumb, you borrow money on appreciating assets and pay cash for depreciating assets.
1130125
Retained earnings and depreciation are accounting figures and do not represent cash flows.  Retained earnings itself cannot generate cash, neither can depreciation.\n\nOn a balance sheet, retained earnings is an accumlative figure representing the amount of income retained (or lost) by a business in each year of its existance.  It does not represent cash balances.  In fact, when preparing a cash flow statement you ignore it completely\n\nDepreciation is an attempt to ensure annual accounts, inparticular the annual profit figure, show a fair figure for profit in that year.\n\nFor example if you were a farmer who had\nincome of £10,000\nand\ncosts of £5,000 you would make a\nprofit of £5,000.\n\nHowever if bought a tractor in one year which cost £10,000 which would last for 10 years.  You would make a loss of £5,000 in one year and profit in the next 9 when the cost of the tractor was actually helping you make that profit.  Is this a fair way of showing profit?  Nope no really.\n\nThe international accounting standards require that you spread the cost of the tractor out across the years that you will get benefit from the tractor (say £10,000 divided by 10 years = £1,000 per year).  This means you would make a profit of £4,000 rather than a loss.  Much fairer.\n\nYou can calculate the cash flow (which can be negative and positive) in a particular year by starting with retained earnings in that year and adding back in the depreciation charge for the year and any other non-cash adjustments (such as provisions) and taking off any increase of Inventories, adding in any decrease in Inventories, taking off any decrease in trade creditors, adding in any increase in trade creditors and taking off any increase in debtors and adding in any decrease in debtors.  This is a very simplistic view and you would do well to look at an example.\n\nTry searching the net for How to prepare a cash flow statement using the indirect method.
170087
The Economist has an Economics A to Z section to help you understand various terms.\n\nIts helpful for looing up depreciation, gross, net, etc.
1175469
what's the money being deducted for
142379
depends on the method, but probably the cost.  That way if you decide to discount your inventory to get rid of it, you will know how much you are really losing and not just how much less you are selling it for.