| jd8850 - 12/25/2024 21:04
Im puzzled why you want your insurance values different than your balance sheet?
You want to insure for more than they're worth and pay extra premium?
There are at least 3 different balance sheet scenarios I can think of.
1. Leaving land values the same to see if you're "making actual money not due to inflation" But that's not a true net worth.
2. Changing land values and machinery values, which is more of an actual net worth.
3. This one is the killer. NOT having income tax implications in there if:
You sold out.
Got sold out.
Died leaving estate with heirs.
In the first 2 scenarios you cd easily owe 40% tax if everything is sold because:
The machinery is depreciated out.
Land was bought cheap.
So you're really not worth what you think you are or what the balance sheet shows. I will add, you still are worth what balance sheet shows, but because of very poor planning, you now owe 40 percent in taxes. Totally unnecessary.
Edited by Boone & Crockett 12/26/2024 04:34
|
Balance Sheet-What's the point?
