labor depreciation

[mconley]

What is the name of your state (only U.S. law)? Ohio. Can you legally depreciate labor?

 

[Banned_Princess]

What is the name of your state (only U.S. law)? Ohio. Can you legally depreciate labor?

What does that even mean?

 

[mconley]

labor deperciation

When I am completing an estimate for insurance related repair to a dwelling, and I apply depreciation to the estimate according to the age of the items being replaced, is it legal to apply depreciation to not only the material but also the labor for the repair?

 

[You Are Guilty]

What is the name of your state (only U.S. law)? Ohio. Can you legally depreciate labor?

http://www.motifake.com/image/demotivational-poster/0912/that-word-inigo-montoya-word-think-means-princess-bride-mand-demotivational-poster-1260739585.jpg

 

[tranquility]

While I laughed at the picture, in a way, I think he does.

If I build a house out of used light sticks found after the local rave, how much is the house worth? Would "labor" be a part of it?

Depreciation for taxes and accounting includes labor in the price of the construction. That does not answer the question of the OP, however. As to that, I don't know.

 

[You Are Guilty]

But you answered your own question (which wasn't what the OP asked). "Labor" costs are subsumed in the valuation of the property. You don't get to double-dip and charge for it separately.

And even if you could, what is the depreciation schedule for labor? Does it matter how old the laborer was? How skilled?

 

[tranquility]

But you answered your own question (which wasn't what the OP asked). "Labor" costs are subsumed in the valuation of the property. You don't get to double-dip and charge for it separately.

And even if you could, what is the depreciation schedule for labor? Does it matter how old the laborer was? How skilled?

From:

When I am completing an estimate for insurance related repair to a dwelling, and I apply depreciation to the estimate according to the age of the items being replaced, is it legal to apply depreciation to not only the material but also the labor for the repair?

I get the OP is going to submit an estimate for repairs to the insurance company. Rather than ESTIMATE THE REPAIRS he is crafting a figure the insurance company will pay. He is wondering how the insurance company will compensate him fully and if the homeowner will have to come up with more money.

Because the repairs may bring the house up beyond it's depreciated value, the OP is trying to figure if he should bill the full amount of the materials and labor (plus profit) or to discount the materials and/or labor based on the expected compensation.

This is not a purchase of a house, but a repair of a house. There will be a negotiation between the parties as to the amount of compensation available for the repair from the insurance company. Many contractors take insurance compensation as total compensation and cut their profit a bit. I think the OP is trying to calculate the highest figure he can use to make that happen.

 

[HomeGuru]

As an attorney, my labor is always depreciated.

 

[You Are Guilty]

This is not a purchase of a house, but a repair of a house. There will be a negotiation between the parties as to the amount of compensation available for the repair from the insurance company. Many contractors take insurance compensation as total compensation and cut their profit a bit. I think the OP is trying to calculate the highest figure he can use to make that happen.

All well and good, but there is already a name for this process. I believe its called "negotiation", and it has nothing to do with depreciation, (or, in HG's case, "self-depreciation").

It just strikes me as an "end justifies the means" type thought process.

 

[tranquility]

All well and good, but there is already a name for this process. I believe its called "negotiation", and it has nothing to do with depreciation, (or, in HG's case, "self-depreciation").

Many who do "negotiation" like to know what the numbers represent. It helps shift the favor to your side.

 

[You Are Guilty]

Many who do "negotiation" like to know what the numbers represent. It helps shift the favor to your side.

You clearly have not dealt with NYC plaintiff's lawyers

 

[tranquility]

They must not have tiger blood or be winners, duh.