Owner Earnings, Explained: Buffett's Measure of What a Business Really Earns
Owner earnings equal reported earnings plus non-cash charges minus maintenance CapEx — the cash you could withdraw without shrinking the business.
#depreciation
Depreciation
Methods and strategies for depreciating fixed assets including straight-line, MACRS, and accelerated depreciation
Recurring Journal Entries, Explained: The Month-End Entries That Post Every Period
Depreciation, amortization, prepaids, and accruals post monthly so each period carries its own costs — templates plus a quarterly review keep them honest.
Deferred Tax Assets and Liabilities, Explained: The Tax Your Books Already Know About
Deferred taxes are timing gaps between book income and IRS taxable income — depreciation creates future bills, reserves and NOLs create future savings.
Equity LifeStyle Q3 2026 Earnings: Normalized FFO Up 5% to $0.79 as Net Income Falls 11%
Equity LifeStyle Q3 2026 normalized FFO rose 4.6% to $0.79 on 5.7% manufactured-housing rent growth; net income fell 11% to $89.3M on a $12.1M tax reserve.
Sum-of-the-Years'-Digits Depreciation, Explained: The Accelerated Fraction Method
Sum-of-the-years'-digits front-loads depreciation with a falling fraction — remaining life over n(n+1)/2 — landing exactly on salvage value.
Contra Accounts, Explained: Why Your Lender Reads the Net Number, Not the Gross One
Contra accounts offset their parents without erasing them: lenders underwrite net receivables, net equipment value, and net sales — not gross.
Real Estate Dealer vs. Investor: Why the Same Gain Is Ordinary Income for a Flipper and Capital Gain for a Landlord
Dealer flips face IRS ordinary income plus self-employment tax; investor sales get capital-gains rates, installment sales, and 1031 exchanges.
Depreciation Methods Compared: Straight-Line, Declining-Balance, Units-of-Production, and Sum-of-the-Years'-Digits
All four depreciation methods expense the same total — they differ only in timing. Compare formulas, salvage-value handling, and when each fits.
Fiduciary Accounting Income, Explained: How Trustees Split Principal From Income
Fiduciary accounting income, not taxable income, sets trust distributions — dividends and rent to the income beneficiary, capital gains to principal.
Units-of-Production Depreciation, Explained: How to Turn Lifetime Output Into a Per-Unit Write-Off
Divide cost minus salvage by lifetime output for a per-unit rate, then multiply by actual production — ideal for equipment with uneven usage.
Amortization vs. Depreciation: What Each Method Expenses, and the Loan Schedule That Confuses Everyone
Depreciation expenses tangibles minus salvage value; amortization writes off intangibles with none — and the IRS stretches acquired intangibles over 15 years.
Change in Accounting Estimate vs. Change in Principle: Why a Longer Useful Life Hits Prospectively While LIFO-to-FIFO Restates the Past Under ASC 250
Estimate changes apply prospectively; principle changes restate history via retained earnings — and the IRS wants Form 3115 for the tax side.