Register free!

The Green Industry's Resource Center



Reply
 
Thread Tools   Display Modes
  #1  
Old 04-26-2001, 07:47 PM
mowntrim mowntrim is offline
LawnSite Member
 
Join Date: Nov 2000
Location: SWPA Zone 5B-6A
Posts: 5
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.
Still cuttin',
mowntrim
email: jon.all@lcsys.net
Reply With Quote
  #2  
Old 04-27-2001, 09:46 PM
jay jay is offline
LawnSite Member
 
Join Date: Nov 2000
Location: california
Posts: 133
I WOULD TALK TO YOUR LOCAL DEALER AND TELL THEM WHAT EQUIPMENT YOU HAVE AND HAVE THEM WRITE DOWN HOW MUCH ITS WORTH.
Reply With Quote
  #3  
Old 09-01-2001, 02:45 PM
Guido Guido is offline
LawnSite Silver Member
 
Join Date: Feb 2000
Location: North Las Vegas, Nevada
Posts: 2,085
Well......

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:
Reply With Quote
  #4  
Old 09-01-2001, 06:42 PM
Stonehenge's Avatar
Stonehenge Stonehenge is offline
LawnSite Bronze Member
 
Join Date: Feb 2000
Location: Midwest
Posts: 1,277
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.
Reply With Quote
  #5  
Old 09-01-2001, 07:30 PM
John Allin John Allin is offline
LawnSite Bronze Member
 
Join Date: Sep 2000
Location: Erie, PA
Posts: 1,489
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.
Reply With Quote
  #6  
Old 09-01-2001, 10:08 PM
Got Grass? Got Grass? is offline
LawnSite Senior Member
 
Join Date: Feb 2001
Location: Western NY
Posts: 363
Stonehenge, I'm tring to figure out how you could sell a truck that was origional 9k a few years ago, for 15k today?
Reply With Quote
  #7  
Old 09-01-2001, 10:15 PM
Got Grass? Got Grass? is offline
LawnSite Senior Member
 
Join Date: Feb 2001
Location: Western NY
Posts: 363
oh yeah

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.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 04:44 AM.

Page generated in 0.08106 seconds with 9 queries