Depreciation Expense is all fine an dandy until it comes time for recapture. Do you want to pay 39% on the “gain” of selling a $100,000 machine—original cost 3 years later for $33,000 which, coincidentally, is what you still owe the bank?
“Depreciation Expense is all fine an dandy until it comes time for recapture. Do you want to pay 39% on the “gain” of selling a $100,000 machine—original cost 3 years later for $33,000 which, coincidentally, is what you still owe the bank?”
Yes, I will take that every time. Anyone with half an understanding of the time value of money will as well. An expense deduction is always, and I mean always, better than depreciation. There is recapture on equipment depreciation too if you did not know. By the way, I am a tax attorney, so if you want to talk taxes, I will be happy to talk.