Depreciation recapture refers to the tax rate
charged on depreciation allowances when an owner sells a commercial building.
Not exact matches
Depreciation on the assets to be transferred to us was previously charged to us through allocations from HP Co.; accordingly, no incremental depreciation charge is included in the pro forma financial
Depreciation on the assets to be transferred to us was previously
charged to us through allocations from HP Co.; accordingly, no incremental
depreciation charge is included in the pro forma financial
depreciation charge is included in the pro forma financial statements.
If the business valuation is based
on earnings, cash flow or earnings before interest, tax,
depreciation and amortization (commonly dubbed EBITDA), then the seller will now be motivated to remove those personal
charges to present the highest value to the buyer.
Debt Service Coverage Ratio = (PBT +
Depreciation + Other non-cash
charges + Interest
on term loan + Lease Rental) / (Interest
on Term loan + Lease Rental + Repayment of Term Loan)
If they depreciate in a corporation, that
depreciation charge is accounted for against income and it's not a big deal — the company just distributes the cash that it can based
on retained earnings which accounts for
depreciation expense.
This cover ensures no
depreciation is
charged on the replaced part.