Archivos de Categoría: Bookkeeping

Depreciation is a critical accounting tool, but relying on it as your only indicator of an asset’s value can lead to blind spots. Learn what blocked assets are and how they can affect businesses and individuals. The sum-of-the-years’-digits method is a more complex method that takes into account the asset’s remaining useful life. All information […]

Footnotes to the financial statements refer to extra information that a company supplies about its finances when filing a financial statement. Footnotes are also called supplementary notes that explain the figures and accounts contained in the company’s financial statements. For clarity purpose, points and information that aid a better understanding of the financial accounts such […]

Depreciation recapture occurs when a depreciable property is sold for more than its adjusted cost basis, which includes depreciation taken during ownership. In a 1031 exchange, the accumulated depreciation transfers to the new property, and recapture is deferred until the sale of the replacement property, at which point it may be taxed as ordinary income. […]