How Depreciation Recapture Works on Your Taxes

Depreciation recapture can be a useful approach to saving on taxes when it comes to capital assets. Whether your assets classify as rental property or equipment, you’ll be able to generate realized gain, and possibly even capital gains tax benefits, as long as your asset’s sale price exceeds its
Posted: December 20, 2022 By: Comment: 0

What Is A Plant Asset? Example and More

Where it is the latter, the costs may be capitalised if they meet the recognition criteria and any replaced parts are derecognised. Only subsequent expenditure which can provide an incremental benefit should be capitalised. In other words, the subsequent expenditure enhances the economic benefits expected to flow from the
Posted: September 1, 2022 By: Comment: 0

Journal entry for fixed asset disposal gain loss

The disposal value is a numeric amount that equates to how much the asset is worth at the date of its deposition. It is recommended to consult an accountant or financial advisor for guidance. This ensures records are accurate and helps with making decisions about replacements and investments. Therefore,
Posted: April 27, 2022 By: Comment: 0

Gross vs Net Income: Whats The Difference?

Gross profit can also be a misnomer when considering the profitability of service sector companies. A law office with no cost of goods sold will show a gross profit equal to its revenue. Gross profit may indicate a company is performing exceptionally well but must be mindful of the
Posted: January 18, 2022 By: Comment: 0