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Janet Behm
  • Accountant
  • West Jordan, UT
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Depreciation Is A Loan

Janet Behm
  • Accountant
  • West Jordan, UT
Posted

I just came from LinkedIn. If you have access, I'm recommending a post: Matt Hamilton, CPA .
His graphic, hand-drawn: DEPRECIATION IS A LOAN.
Massive re-frame. 

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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
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Michael Plaks
#1 Tax, SDIRAs & Cost Segregation Contributor
  • Tax Accountant / Enrolled Agent
  • Houston, TX
Replied

@Julius Vincent

Using that very same logic, a loan can be replaced by another loan, and borrowing carries the same "time value of money" benefit. So the analogy [depreciation = loan] remains near perfect, colleague. :)

As to your "math still favors you" - I'd replace it with "math might favor you." If we change the assumptions you made, it could work in the opposite direction.

Why can't we all agree that cost segregation could be wonderful but not always so?

  • Michael Plaks
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