Asking for closing costs, depending upon price point, is quite common these days. It frees up front cash and could allow a buyer to purchase a higher-priced home. … You’ll want to feel confident that the property will appraise at the agreed-upon price. You might wonder if you are goingRead More →
“The sunk cost effect is the general tendency for people to continue an endeavor, or continue consuming or pursuing an option, if they’ve invested time or money or some resource in it,” says Christopher Olivola, an assistant professor of marketing at Carnegie Mellon’s Tepper School of Business and the authorRead More →
Housing Rights has particular concerns about how Universal Credit deals with changes of circumstance, particularly in respect of tenants who move home during an assessment period. Changes of circumstances are backdated to the beginning of the assessment period in which the change happened. Can housing element of Universal Credit beRead More →
A renovation is not an expense, any way you look at it. It’s a property improvement that gest capitalized and depreciated over time. For a rental property, deprecation is over 27.5 years. You’ll add the property improvement in the Assets/deprecation section of the program. What costs Cannot be capitalized? ItRead More →
According to this viewpoint, in monetary terms, flotation costs can be specified as an amount per share or as a percentage of the share price. … This negatively impacts the value of the project by reducing its initial cash flow. What are flotation costs and how do they affect aRead More →
Relevant costs are also referred to as avoidable costs or differential costs. For a cost to be considered a “relevant cost,” it must be incremental, result in a change in cash flow, and be likely to change in the future. Hence, a relevant cost arises due to a particular managementRead More →
Warranty expense is an expense related to the repair, replacement, or compensation to a user for any product defects. What costs should be capitalized? All expenses incurred to bring an asset to a condition where it can be used is capitalized as part of the asset. They include expenses suchRead More →
Intangible drilling costs are an above-the-line deduction on the federal Form 1040. That means that they reduce adjusted gross income and also taxable income. Where do you enter intangible drilling costs? To enter intangible drilling costs from a Partnership Schedule K-1: Go to Screen 25, Passthrough K-1’s. Under the ScheduleRead More →
When comparing fixed costs to variable costs, or when trying to determine whether a cost is fixed or variable, simply ask whether or not the particular cost would change if the company stopped its production or primary business activities. If the company would continue to incur the cost, it isRead More →
An example of shoe leather costs would be driving to the grocery store to stock up on goods in anticipation of inflation. If the nominal interest rate on a 30-year fixed rate mortgage is equal to 3.99% and the inflation rate is equal to 2.1%, then the real interest rateRead More →