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Re: Mysterious $500k income mentioned in Q3 CC*

By: Cactus Flower in ALEA | Recommend this post (0)
Mon, 19 Mar 12 11:23 PM | 59 view(s)
Boardmark this board | The Trust Matrix 		Msg. 06929 of 54959
(This msg. is a reply to 06927 by DigSpace)
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A house is probably a bad example as house values often rise.

But let's assume that house prices fall as the house gets older.

So you paint your house.

Does the paint cost you money? Does painting the house require labour? If so, these are real rather than notional costs.

And so these are very different from simply recognising that the value of your house has gone down and trying to quantify that amount on a financial report.

Paint has nothing to do with depreciation, by the way. Completely different things. Not sure how that meme has lodged itself.

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The above is a reply to the following message:
Re: Mysterious $500k income mentioned in Q3 CC*
By: DigSpace in ALEA
Mon, 19 Mar 12 10:56 PM 		Msg. 06927 of 54959

Right, I don't see how that differs in say, my depreciating rental property one year, and then expensing the paint the next year when I decide to paint it. Now, if I sell the assent then I have to own up to the depreciation, but until then it seems the same, no?

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