Can the depreciation experts help me with a query please.
So....I know someone who has just purchased a property that is a few years old. They told me how great it was, because they didn't have to waste money on paying for a depreciation schedule, as the previous owner had given them theirs.
Now, that does sound good in theory. I mean, the depreciation schedule is about depreciating the cost-base of an asset, and that should not change........BUT I also know that I've heard it said that you should always get a new one.
So, can someone clarify WHY a new one should be used, as I have absolutely no idea, and then I can pass on what I learn.
Oh, and while you are at it, why does the purchase price of an asset matter when doing a report. I've never questioned this before, but, hey, since I'm asking questions, I might as well ask this one too. Surely, unless the property is new, it is irrelevant how much you paid for it.
So....I know someone who has just purchased a property that is a few years old. They told me how great it was, because they didn't have to waste money on paying for a depreciation schedule, as the previous owner had given them theirs.
Now, that does sound good in theory. I mean, the depreciation schedule is about depreciating the cost-base of an asset, and that should not change........BUT I also know that I've heard it said that you should always get a new one.
So, can someone clarify WHY a new one should be used, as I have absolutely no idea, and then I can pass on what I learn.
Oh, and while you are at it, why does the purchase price of an asset matter when doing a report. I've never questioned this before, but, hey, since I'm asking questions, I might as well ask this one too. Surely, unless the property is new, it is irrelevant how much you paid for it.