Quote:
Originally Posted by hellosailor
zAr, depreciation still applies.
Depreciation refers to the fact that the value of all goods decreases as they age. "Depreciating" the value of assets refers to showing that loss on your balance sheets, or on your taxes if the tax code allows you to do that. For instance, a corporation that buys a new masonry and steel building, or a thousand miles of transmission wires and towers, cannot just write off the "cost" of that all at once. They are tradiitonally allowed to "depreciate" the cost over a 40-year period. (In some cases less.)
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Are you saying that depreciation still applies to non-business owners? E.g. people with no business set up? Maybe things are different in the US but up here in Canada balance sheets, incorporations, etc., are generally for businesses. Do you write off your house, for instance, or things which aren't related to your business?