Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (166386)	11/22/2008 5:19:44 PM
From: BWAC	Read Replies (2) \| Respond to of 306849

Full wirteoff Year 1: 80K "receipts" less 40K "Costs of those receipts" = 40K net income less 70k Escalade = 0 taxable income. And a 30k carryover to next year. Year 2: 80k - 40k = 40k net income - 30 carryonver = 10K income. Year 3: 80k - 40k = 40k net income And so on for years 4 thru 5. Total income years 1-5 = 130k ------------------------------------------------- Under normal depreciation rules. 5 years for example Year 1 80k -40 = 40 less (1/5 x 70K or 14K) = 26k income Year 2 8ok - 40k = 40 less 14k more = 26k income And so on years 3 thru 5. Total income years 1-5 = 26k x 5years = 130k -------------------------------------------------- Nothing more than income shifting over a period of time to stimulate purchases and business investment. It could be on cars, computer equipment, tools, most anything. Now if you want to argue the prudence and actual business usage of that Escalade that is a whole different thing. But free it is not. In fact in some instances it might even be detrimental.