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Recapture Of Depreciation |
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Recapture Of DepreciationTaxing as ordinary income, upon the sale of property, the amount of depreciation taken above straight line depreciation.Recapture Of Depreciation Similar MatchesDepreciationDepreciationThe charge in a company's accounts which reflects the reduction in value of an asset over time as its useable life is exhausted.Depreciation is charged before calculation of profit, on the grounds that the use of capital assets is one of the costs of being in business and one of the contributors to profit.There are two main methods of depreciation:Straight line: the residual (scrap) value of the asset is deducted from its original cost, and the resultant figure is divided by the estimated life of the asset. The result of that is deducted annually over the life of the asset. So an asset that costs £10,000 and that has a residual value of £200 with a useable life of 4 years is depreciated by £2450 per year.Reducing balance: the amount of annual depreciation is a constant proportion of the cost of the asset.Depreciation has no effect on cash flow. It is just an accounting procedure. Book DepreciationBook DepreciationDepreciation reserved (on the books) by an owner for future replacement or retirement of an asset. Asset Depreciation Range SystemAsset Depreciation Range SystemA range of depreciable lives the IRS allows for particular classes of assets. Real appreciation or depreciationReal appreciation or depreciationA change in the purchasing power of a currency. Accrued DepreciationAccrued Depreciation(1) The amount reserved each year in the accounting system for replacement of a building or other asset. (2) The useful life of a property at any given time. Further SuggestionsDeclining Balance Method Of DepreciationDepreciation Earnings before interest, taxes, depreciation, and amortization (EBITDA) Straight line depreciation Depreciation Sum of the years digits depreciation Capital depreciation Currency depreciation Double declining balance depreciation Double Declining Balance Method Of Depreciation Capital appreciation or depreciation Depreciation tax shield Earnings before interest, taxes, and depreciation (EBITD) Currency depreciation Double declining balance depreciation method (DDB) |
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