book depreciation

Book Depreciation

A depreciation method based on the accounting method a company uses. That is, book depreciation is used for a company's internal and external accounting reports. It contrasts with tax depreciation, the method used to conform to the rules of the relevant tax agency.

book depreciation

The amount of depreciation expenses deducted for a property on the books and records of a company.Book depreciation may be charged at a faster or slower rate than allowed by the IRS,in order to provide management with a realistic view of the gradually diminishing value of the company's assets.

References in periodicals archive ?
Under the curative allocation method, sufficient income or deductions may be reallocated among the partners to give noncontributing partners the benefit of book depreciation.
As long as the tax depreciation allocated to Carol does not exceed her share of book depreciation, there does not appear to be any potential for abuse and this method should be allowed.
The Company believes EBITDA facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structure (affecting relative interest expense), tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses) and the age and book depreciation of facilities and equipment (affecting relative depreciation expense).
Related book depreciation is expected to average approximately $18 million during 2005-2007, and maintenance capital for the acquired assets is expected to be approximately $2 million annually.
In addition, the Company is reviewing the estimated useful life for its compressor fleet used for book depreciation purposes with the assistance of an independent equipment valuation firm.
The company believes use of EBITDA facilitates operating performance comparisons from period to period and company to company by removing potential differences caused by variations in capital structures (affecting primarily relative interest expense), the book amortization of intangibles (affecting relative amortization expense), the age and book depreciation of facilities and equipment (affecting relative depreciation expense) and other non-cash charges.
The allocations of book depreciation and cost recovery tax between A and B have the following consequences: * The equality between A's (the noncontributing partner's) adjusted outside basis and his capital account has been preserved.
The following reconciles net income to REIT taxable income: Years Ended December 31, 2005 2004 2003 (In thousands) Net income $11,297 $24,781 $8,174 Less: taxable REIT subsidiaries net income, net of tax (1,414) (145) Add: book depreciation 1,240 1,872 1,967 Less: tax depreciation (1,483) (1,935) (1,927) Book/tax difference on property sales (350) 135 (650) Book/tax difference on Retained Interests, net 1,880 3,557 672 Impairment losses 2,210 Negative goodwill (11,593) Asset valuation 181 (516) 310 Other book/tax differences, net (273) 96 127 REIT taxable income $13,288 $16,252 $8,673 Distributions declared $13,569 $14,140 $9,932 Common shares outstanding 10,766 10,877 6,453
The following reconciles net income to REIT taxable income: Three Months Ended March 31, 2005 2004 (In thousands) Net income $4,116 $14,246 Less: taxable REIT subsidiaries net income, net of tax (229) (6) Add: book depreciation 437 461 Less: tax depreciation (360) (467) Book/tax difference on property sale (39) Book/tax difference on lease income (381) Book/tax difference on retained interests in transferred assets, net 515 721 Negative goodwill (11,593) Loan valuation 110 (189) Other book/tax differences, net (37) 7 REIT taxable income $4,132 $3,180 Distributions declared $3,807 $3,055 Common shares outstanding 10,880 10,844
Allegro believes EBITDA facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structure (affecting relative interest expense), tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses) and the age and book depreciation of facilities and equipment (affecting relative depreciation expense).
The following reconciles net income to REIT taxable income: Years Ended December 31, 2004 2003 (In thousands) Net income $24,781 $8,174 Less: taxable REIT subsidiaries net income, net of tax (145) Add: book depreciation 1,872 1,967 Less: tax depreciation (1,935) (1,927) Book/tax difference on losses (gains) on sales 135 (650) Book/tax difference on retained interests in transferred assets, net 3,557 672 Negative goodwill (11,593) Asset valuation (516) 310 Other book/tax differences, net 96 127 REIT taxable income $16,252 $8,673 Distributions declared $14,140 $9,932 Common shares outstanding 10,877 6,453
Deferred tax assets include accruals not currently deductible for taxes, book depreciation in excess of tax depreciation, tax credit carryforwards, and net operating loss carryforwards.