Excess Depreciation
Definition of "Excess depreciation"
Costs taken over an above what one is entitled to. This can occur either by claiming depreciation costs exceeding actual depreciable value or by depreciating items that cannot be depreciated. Items that cannot be depreciated include land, since it never wears out, inventory, containers, costs to demolish a building, a life interest or an interest for a term of years in a property, or income interest in a trust.
Popular Real Estate Terms
Land that has poor income potential, usually used in an agricultural sense meaning that the land is untellable, has poor access, is extremely steep, has suffered serious erosion, is ...
A situation that occurs when borrowed funds cost more than they produce. ...
Expenditure paid to occupy property over a specified time period. ...
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The interest rate charged for a loan. For example, John obtained a $10.000 loan from the bank charging 10% interest. ...
mortgage being reduced through periodic principal and interest payments. ...
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Same as term resale proceeds: Net amount received when property is sold. It equals the selling price less outstanding mortgage balance less all costs incurred in connection with the sale. ...
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