Net Book Value of Computers

… or when to completely write 0ff the net book values of those darn computers. 😉

  • InvestorWords: net book value“The net value of an asset. Equal to its original cost (its book value) minus depreciation and amortization. also called net book value and depreciated cost.”
  • Investopedia: Book Value“1. The value at which an asset is carried on a balance sheet. In other words, the cost of an asset minus accumulated depreciation. 2. The net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities.”
  • Nebraska Personal Property Return“Net Book Value is the taxable value for property tax purposes. It is the Nebraska adjusted basis of the tangible personal property multiplied by the appropriate depreciation factor for the recovery period and year. The property tax is imposed on the net book value of tangible personal property. Example: A computer has a Nebraska adjusted basis of $12,000. The computer was purchased three years ago. The computer has a recovery period of five years. The depreciation factor (see Table 1) is 41.65%. The net book value (taxable value) of the computer is $4,998.”
  • Writing Off Those Computers More Quickly – Small Business Canada, March 27, 2004 – “… a new Capital Cost Allowance class for computers. Now computers purchased March 23 or later will be eligible for a Capital Cost Allowance of 45 percent [in first year] rather than 30 percent, meaning that businesses will be able to write them off more quickly.”
  • Tax Change 2005: Writing Off Small Business Equipment Fast – regarding US taxes – “Tax planners call it “first-year expensingâ€? and the IRS calls it the “Section 179 deduction.â€? Whatever you call it, you get to write off not 50% but 100%, of the cost of the equipment in the first year of use … First-year expensing only works for small business.”
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