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Depreciation

MSB uses what I understand is straight line depreciation. This makes it impossible for me to get the right Cost Approach number without backing into the number all the time. Is there any product out there that depreciates by line item?

Mike

Raleigh

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Permalink Reply by Rick Daniel on February 7, 2010 at 12:58pm: By MSB I assume you are referring to the Marshall and Swift Cost Handbook. There is a section that gives typical life spans for various items. That may help.; ▶ Reply to This

Permalink Reply by Robert A. on February 8, 2010 at 12:47pm: Try contacting Kelly Mathews at Bluebook International I don't believe they use straight line depreciation. Good Luck 888-425-8326.; ▶ Reply to This

Permalink Reply by Rick Daniel on February 8, 2010 at 9:34pm: The problem with depreciation is that it is usually very subjective and is mostly an exercise in theory for houses that are not new or nearly new. For instance, if you want to depreciate a range/oven and its typical life is 10 you might say its effective age is 5. So, the range/oven has depreciated 50% of its cost's new. The subjective part is the educated guess for the effective age.; ▶ Reply to This