Depreciation Guidelines?
I've got a couple of questions about depreciation for a Class A Diesel RV. I frequently read that a new RV looses 30% of it's value the moment you drive it off the lot. I've also heard that you should...
Forum Discussion
John&Joey wrote:Two Jayhawks wrote:Effy wrote:John&Joey wrote:
My fast rule of thumb has always been 50% every five years. Not very scientific, but as a general rule it has served me well.
So a 10 yr old MH is worth nothing?? :h
Nah a 10 year old unit would be worth 25% of when it was new.
Thanks.
You know what Ron White says.
No, what does he say? He work in the RV industry or is he a drunk comic?
Some of you are pretty quick to draw your wit guns only to find they aren't loaded.
If the statement was clarified it may have made more sense. 50% of what? 50% run rated over the life of the RV where the rate is applied to the previous years depreciated value per annum or flat 50% off MSRP? I can do math, I've been working at banks for over 20 years. But the statement itself without a clarifying time frame or basis leaves a lot to infer.
Retail depreciation is not that hard to calculate. It's all about fair market value. What does the same or similar unit in similar condition fetch on the open market? You can read NADA or make up a value all day but if it doesn't sell then it's a worthless piece of data.
Depreciation for tax purposes - like a commercial vehicle can realize a 5 year write down - or 20% a year from MSRP. Notice the latter statement references a base point and is not run rated of 20% from the previous year's depreciated value.
At the end of the day, depreciation only matters if you can claim it, or you plan on selling it. Otherwise it's just a number to keep you awake at night.
