Posted by AlexCO on June 07, 2009 at 15:11:30:
In Reply to: Re: RE Licence Textbook is WRONG, I'M RIGHT! posted by michaela-CA on June 07, 2009 at 08:49:39:
The way you calculate "your depreciation", the value of the building of this property will never be ZERO (0) even after 20 years, 27.5 years or 100 years, because the value of the building next year is 95% of this year.
It will be infinitely close to zero after infinite years, but will never be zero.
That is the problem for the tax-code or accounting definition of depreciation.