15 June 2013
THERE ARE TWO MAJOR ,FACTORS WHY BANKS PURCHASE BUILDINGS INSTEAD OF GETTING THAT RENTED... 1. WITH THE DEPRECIATION CLAIM THE CAN BRING DOWN THE TAXABLE PROFITS AND AS SUCH THEY SAVE TAX.. 2. THE COST TO RENT A BUILDING IS MUCH MORE THAN TO PURCHASE IT...IF YOU TAKE A ANALYTICAL VIEW TOWARDS IT WITH THE INFLATION FACTOR IT IS ALWAYS BETTER TO PURCHASE..
YES THE PROFITS COME DOWN BECAUSE OF DEPRECIATION BUT THAT IS IN ALL WAYS FAVOURABLE TO THE BANKS...
CAclubindia
