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Old 02-01-2011, 12:14 PM
 
8,268 posts, read 10,386,216 times
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This thread has devolved to silliness.

TexasUser even if automobiles depreciated 95% in their first month they are still an asset since they have monetary value. Whether an automobile (or a painting, or a couch, or a poodle) is leveraged also has nothing to do with whether it is an asset, something is an asset if it has value.

If I take out a home equity loan to buy a car then sold the car for cash but still have the heloc how was that car not an asset? I converted it to cash in a transaction because it had value, regardless of whether I took on debt or how debt was structured.

 
Old 02-01-2011, 06:56 PM
 
12,671 posts, read 20,509,033 times
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Quote:
Originally Posted by user_id View Post
The that he/she is able to sale it shows you that its an asset. If the home wasn't an asset it would have no value.

I hate to break it to you but an Automobile is an asset....
Lot of things have value but will it be valued to the seller from the original purchase price?

In Accounting terms an Automobile is a Liability. They heavily depreciate in value.
 
Old 02-01-2011, 07:02 PM
 
12,671 posts, read 20,509,033 times
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Quote:
Originally Posted by Merc63 View Post
"Depreciation is a concept used in accounting to measure the decline in an asset's value spread over the asset's economic life. Depreciation allows for future investment that is required to replace used-up assets."

What Is A Depreciating Asset?

Average Buyer: The Appeal of a Depreciating Asset

How old are you? You really have your brain completely closed up and unable to learn basic concepts. I realize now it's not because you WANT to understand them, but can't, but because you steadfastly REFUSE to understand them.
Vehicle is a Depreciating Asset unless you have a classic.
You think people buy cars for investments?
 
Old 02-01-2011, 07:04 PM
 
13,719 posts, read 22,861,903 times
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Quote:
Originally Posted by slackjaw View Post
TexasUser even if automobiles depreciated 95% in their first month they are still an asset since they have monetary value. Whether an automobile (or a painting, or a couch, or a poodle) is leveraged also has nothing to do with whether it is an asset, something is an asset if it has value.
You absolutely have it right. Only assets depreciate.
 
Old 02-01-2011, 07:04 PM
 
12,671 posts, read 20,509,033 times
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Quote:
Originally Posted by user_id View Post
Its an asset to whoever owns it, that would be the individual that brought the house.
If the money earned back is more then the initial investment.
 
Old 02-01-2011, 07:05 PM
 
12,671 posts, read 20,509,033 times
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Quote:
Originally Posted by user_id View Post
Whether not something is an asset has nothing to do with whether you've received a capital gain from it or not.


Because it has value. Automobiles don't lose most of their value the first 2 years either...
Automobiles lose value as soon as you drive off from the dealership.
 
Old 02-01-2011, 07:07 PM
 
12,671 posts, read 20,509,033 times
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Quote:
Originally Posted by slackjaw View Post
This thread has devolved to silliness.

TexasUser even if automobiles depreciated 95% in their first month they are still an asset since they have monetary value. Whether an automobile (or a painting, or a couch, or a poodle) is leveraged also has nothing to do with whether it is an asset, something is an asset if it has value.

If I take out a home equity loan to buy a car then sold the car for cash but still have the heloc how was that car not an asset? I converted it to cash in a transaction because it had value, regardless of whether I took on debt or how debt was structured.
Yes, the automobile has a value but is it an asset to the seller? Are you going to buy vehicles or real estate for investments?

Your goal is to make profit.
 
Old 02-04-2011, 12:00 AM
 
245 posts, read 450,227 times
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Quote:
Originally Posted by Texas User View Post
Automobiles lose value as soon as you drive off from the dealership.
You're also getting utility out of it the moment you drive it off the lot.
 
Old 02-04-2011, 01:43 PM
 
12,671 posts, read 20,509,033 times
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Quote:
Originally Posted by mclarlm View Post
You're also getting utility out of it the moment you drive it off the lot.
Same thing as renting an apartment. Got to live somewhere and got to drive something.
 
Old 02-04-2011, 01:46 PM
 
Location: Moscow
2,078 posts, read 2,909,530 times
Reputation: 2524
Quote:
Originally Posted by Texas User View Post
Same thing as renting an apartment. Got to live somewhere and got to drive something.
Not much like an apartment at all. You can't turn around and sell an apartment. In the ledger book:
Vehicle=Credit
Apartment=Debit
House=Credit
Mortgage=Debit
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