Always easier to make up a small $ 1000 loss than to sit on a flat or
depreciating asset while paying high hard money rates.
A car is
a depreciating asset while a mortgage currently is as well.
Not exact matches
While one might put the brakes on this expectation after looking at the 175 % payout ratio, Enbridge's reported EPS numbers are largely impacted by depreciation on
assets that may not be
depreciating at the reported rate (many of these pipelines actually become worth a lot more over time).
Finally,
while I had modest expectations for emerging market (EM)
assets, I certainly missed the latest meltdown in EM currencies, many of which have been
depreciating faster than during the financial crisis.
What you get is a USE
asset that
depreciates over time
while it grows in market value.
The rental deduction may exceed the depreciation in three cases: if the property consists primarily of a nondepreciable
asset, such as land (although land is not depreciable, rental payments for the lease of land may be deducted); if the property has appreciated in value (
while depreciation deductions are limited by the cost of the property, rental deductions may equal the fair market value of the property); or if the property has been fully
depreciated.