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Depreciation as in a gain
Depreciation is always treated as a loss in books of accounts but in certain circumstances it can be a gain can't it??
Replies (4)
Depreiation can be seen as gain as u get deduction for the same in income tax, and hence lower your profit resulting in less tax liability....
Yes...
But say for eg: If i am using someone else's owned car then the depreciation on that car is definitely a loss for the owner but it will be a gain for me.
I was saying that way.
Hi Bhavin,
Chill dude .. can you explain that in which way depreciation of another person will be your gain??
Depreciation is a notional amount. It never physically moves in or out.
Further, asset value is indeed evaporated over the years and hence depreciation is allowed to be claimed. It is loss indeed but not the income of anyone.
Particularly in assets like cars etc (which don't get appreciated over the years like land, ancient thing), your statement is not valid.
Land never appreciates it not depreciated in the buks because it has unlimited useful life.
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