Book and market depreciation?

[YankeeXray]

I was trying to learn about Biz Jet operating costs and how to calculate them. I have a soft that gives you 3 different final costs of any biz Jet. These are TOTAL COST (Book Depreciation), TOTAL COST (No depreciation) and TOTAL COST (Market Depreciation). I want to know if someone can explain me the difference between those 3 costs. Or at least if you can give me same web page where I can read about it and learn. Thanks. Good Flights.

[Phil Brockwell]

I assume this refers to depreciation as a real cost, and depreciation as a accounting too to right down against tax.

You have an allowance, depending on weather the aircraft is new / used, private, leased to a third party or operated byy the owner, this is book depreciation, an accounting exercise to allow a depreciating asset to be ratified annually instead of at purchase or sale.

Market depreciation is the difference in the actual purchase price and the actual sell price.

Hope this makes sense.

Phil

[StressFree]

Multiply the square root of the purchase price by the wingspan in metres and then divide by the bra size of the hostie in centimetres - this will be about as accurate figure as is achievable.

Trust me I'm a doctor............

;)

Hello Supertanker - you couldn't make it up.............

[YankeeXray]

Thanks, that help me a lot. Keep on explaining. Dont be shy. :O :O :O :ok: :ok:

[Air Driven Generator]

There is a article in October's issue of Professional Pilot. Under the heading of Aircraft Depreciation and expensing.

http://www.propilotmag.com/October/article2_oct.html


If the link does not work try

www.propilotmag.com

It is under back issues. It seems like it is mainly US orientated with the new tax act.

ADG :ouch: