In this episode, Adam channels 'The Dude' from The Big Lebowski to explain the complex subject of depreciation in business accounting. He explains its purpose and discusses two main methods: straight-line depreciation and the Modified Accelerated Cost Recovery System (MACRS).
Adam also introduces the Half-Year Convention, providing examples of common useful lives for various assets. To wrap it up, he shares a personal experience with rental property depreciation, highlighting why understanding these concepts is crucial for financial planners and their clients.
The BIF Crew Abides.
