View Full Version : Equipment depreciation
04-26-2001, 06:47 PM
A former Partner has managed to "borrow" certain pieces of equipment from our still operating business. In order to pursue legal action, our counsel needs an appx. value of the stuffs when they disappeared.
Without bothering our accountant ( and for my own personal future use) does anyone have a formula for depreciation of sundry items such as weedeaters, blowers, etc.
Any help appreciated much.
I WOULD TALK TO YOUR LOCAL DEALER AND TELL THEM WHAT EQUIPMENT YOU HAVE AND HAVE THEM WRITE DOWN HOW MUCH ITS WORTH.
09-01-2001, 01:45 PM
This is one of the few things about the business side of the industry that I'm not fully comfortable discussing yet. I would also appreciate any imput on figuring depreciation of equipment and vehicles also.
Thanks in Advance!:blob3:
09-01-2001, 05:42 PM
My accountant works for me. It's not a bother for me to call them. If they know what all your assets are, they should be able to tell you and fax you a sheet detailing that info in 2 minutes.
If your accountant has already been doing your taxes, you'll need to get that info from them anyway. You can follow different amortization paths or formulas, and you won't know what one they've been using unless you ask.
But that info from your accountant may not give you the actual value of the eqpt. I bought a truck for $9K a couple years ago, and while on paper the thing is just about valueless, I know I could sell it for $15K tomorrow.
If you're suing, go for replacement cost, not depreciation-adjusted value.
09-01-2001, 06:30 PM
Sundry items such as you're describing would not be depreciated, but most likely would be expensed in the same year they were acquired.
As an aside, you can also write off $10K of capital expenditures per year without depreciating over years, once a year.
My opinion is that Stonehenge is right... go after replacement cost, and then 'settle' if necessary.
09-01-2001, 09:08 PM
Stonehenge, I'm tring to figure out how you could sell a truck that was origional 9k a few years ago, for 15k today?
09-01-2001, 09:15 PM
Oh yeah, what I was going to post.
If I were you I would go the Dealer and ask them to give you in writing how much each piece of equipment is worth. Tell them what happened and that you are not looking for what thay would buy it from you for but what it is really worth becasue you odviously cant sell it to them. It will also help if you tell them you will be using the money you recover to purchase new equipment from them and will more likely give your equipment more value.
If it is on a form from the dealer, the courts will most likely accept it. And remember the courts almost never give you all you asking for.
vBulletin® v3.8.6, Copyright ©2000-2015, Jelsoft Enterprises Ltd.