Car Dealer Lots Are Flush With Unsold Cars as Sales Are Expected To Drop

It keeps changing all the time but last time I checked the limits were indeed higher

NTM accelerated depreciation is a bonus in itself. Every dollar saved in taxes is free cash flow today, and worth a lot more than in 2-5 years.

I get that, but it’s foolish to go buy a Ford F350 at 60K when you all need is a Honda Ridgeline at 35K.

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The whole idea of depreciation schedules is a politician’s construct anyway. Forcing you to spread the cost of an item over 7 years that you won’t use 7 years is dumb. Not to mention their finger in the air approach to the math that has no coherence to how the business actually values the asset.

This is why airliners do capital leases - to directly expense the money they shell out for an airplane every year during that tax year.

If I drop 10k or 100k in cash on a piece of capital I should be able to expense it at that moment. If I sell it and realize some salvage value down the line, it’s income THAT year.

I’m free to assign a $0 salvage value to my assets and report it to shareholder’s as long as I’m honest and transparent - the fact the IRS forces their accounting on businesses is bullsh*t.

End rant

MUSGA
(Make Uncle Sam Great Again)

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What - No appreciation for depreciation ?

  • Don’t hate just depreciate !
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I knew a guy who was planning to file bankruptcy soon and one-pay leased a high-end Jeep right before filing. It must have been suggested by his attorney or something. Perhaps a lease is judgment proof, but the advantage is you don’t owe any more payments on a one-pay? Not sure what the angle was - didn’t ask lol.

You’re not responsible for the lease in a BK unless you reaffirm the debt. The problem there is, you better be right on time with making those payments…they don’t give you a grace period. Idk how a one pay works, but there’s probably some sort of reaffirmation that is needed. Otherwise, the bank can take back its collateral.