Earnings before interest, taxes, depreciation and amortization Puns

Here is the formula: EBIT (1-tax rate) + (depreciation) + (amortization) - (change in net working capital) - (capital expenditure)

I understand that you take the operating earnings then subtract capex and change in net working capital but it doesn't make sense to me that you would add depreciation and amortization instead of subtracting it. You gain more free cash flow by paying for an expense that you are amortizing?

I'm new to this sub, and relatively new to NetSuite. Coming from Sage, we had the functionality to print IRS form 4562 directly from the software, similar to 1099 (which NS no longer supports). does anyone have a recommended 3rd party add-on that bundles with NS?

When valuation refers to amortization they most often refer to amortization of intangibles correct? I ask this because I'm trying to figure out EBITA but the 10-K has "Depreciation and Amortization" and never actually separates the two. Both terms are talked about under the "Property" note and it refers to "amortization of leasehold improvements" which is the same thing as depreciation for all intents and purposes. The company does have intangible assets through a recent acquisition which are amortized throughout a 20 year period. Should I just subtract that from the "Depreciation and Amortization" term? Or just treat the whole figure as "Depreciation".

I couldn't find anything online to support or refute this....

Also why would it be OK for the amount to be low as well?

I purchased a business via an asset transfer between my S-Corp and the seller's S-Corp. Assets were limited to contracts to provide a service to a customer and equipment/vehicles to operate the business. The contract is generally renewable however next year the company is changing the structure of their contracts and we will have to enter negotiations and re-structure the operation of our business in order to continue working with them. The asset transfer agreement did not assign any specific value to the individual assets and only referenced one purchase price for all assets in total.

Does anyone know how I would depreciate the intangible assets like the contracts and delineate their value vs the vehicles and their depreciation?

Thank you!

I don't know how much I have earned throughout my life so I assume that I can ask the bank and brokers that question and they will be able to give me the records. Once I get that how should I pay for all of my previous years (if I have to)?

All of my account are custodial accounts (I hope to change that soon) so does that mean that it is my parents responsibility to pay taxes?

I really have no clue what I am to do do if you can even point me to a site that would help me understand how this works I would be grateful. Thanks

Edit: I am in the US

Tl;dr: Buy CRSR calls for earnings run up. I know this isn't a GME post but it may be a great place to roll some tendies when GameStop hits $1000 on Friday. GME could actually hit $1000 Friday.

First, check the chart. Today CRSR is up 5% even while the broader market ate shit at open. Buyers came in hot.

After peaking at $51, The stock pulled back smartly. Since then, CRSR has been consolidating while setting higher highs and higher lows every couple of weeks.

$CRSR had a non-dilutive offering last week at $35 per share. This didn't add shares, just gave their initial PE firm a chance to cash out. With 7M shares sold at $35, this built a solid new "floor" for the stock on high volume at $35. Corsair easily digested this move and broke out to $40 before pulling back a bit today. Personally I used today as a chance to sell $25k in puts and buy $25k in calls for Feb 19. Will add more calls on any weakness for the rest of the week.

What does this have in common with GME? Corsair has 36% short interest (obviously lower than GME), but the main IPO lock up period doesn't expire til March. Corsair's current available float is only 20% of total shares outstanding while short interest is 36%. Not a lot of shares available for shorts to cover if the stock starts moving against them.

Last week LOGI crushed earnings, and I fully expect CRSR to do the same. I'm planning to sell the calls pre-earnings if CRSR runs $45+, but won't be buying to close the puts until near expiration. Assuming CRSR outperforms, it could break out above $50 and beyond. Worth a look imo. Always GME TO THE MOON, but this could be the next play.

Not investment advice, just my opinion. Long calls and short puts.

The facts:

• Borrowing $1M USD to buy 50% ownership in an LLC where there is currently only 1 owner
• 10 year payback period
• Business essentially has a cost basis of 0 and I’m buying in at a 2M valuation
• The loan will sit within the business and will be paid from the cash flow of the business
• it is expected that the interest and amortization will then be deducted from my share of the profits

My question is whether or not I can deduct the interest and amortization payments from my income, which will flow to my schedule C. Can I depreciate the goodwill of the purchase price (essentially 100%) over some period? The tax consequences have huge ramifications for whether or not I can swing this. Thanks in advance.

• 31.1% Revenue Growth y-o-y but amortization only grew by 19.3% with content asset reaching record levels
• Adjusting content amortization to be constant with revenue growth brings Operating income to 753M and not 980M

is Netflix playing loose with content amortization to inflate earnings?

Additionally, 25 cents per share after tax seem to come from some FX hedging not actual earnings. If you take this in consideration, there seem to actually be no growth.

Sources:

[1] https://twitter.com/GatorInvestor/status/1184571946501103618

[2] https://twitter.com/WallStCynic/status/1184663102052327430

Planning my post-college budget and built a loan amortization table in Excel to plan my monthly payments on my student debt, including using the PPMT and IPMT functions to calculate the allocation to principal and interest, respectively.

My plan is to use my monthly excess funds to supplement my next month's monthly payment, but the PPMT and IPMT functions don't include your monthly payment amount. Instead, the PPMT and IPMT are functions of the number of periods, your APR, your current period, and the present value of the loan balance.

Are there functions in Excel and/or a way to calculate the allocation of principal and interest for a monthly loan payment assuming a fixed interest rate, a fixed present value of the balance on my debt, but a variable monthly payment and thus a variable number of periods?

Hi all,

Basically, for unrelated reasons, I just filed my 2018 taxes in mid-october.

In 2018, the rental property was our primary residence for Jan1-July31. It was a rental from Aug1-Dec31 (less than half the year).

I make under 100k per year, so I should be able to take the deduction to my (non-passive) income. However, since it was a rental for less than half the year, my understanding is that I can't deduct my losses from my non-passive income. Correct?

If so, can I carry over those losses to 2019?

Basically, I had like $4k in losses counting depreciation in 2018... am I just SOL or can I carry that $4k in losses to 2019? (I'll have a loss in 2019 as well -- it's be nice to add another 4k in losses to my income)

Finally, if I can't carry it over, is there anything else I can/should do? It seems a bit screwy that I'll eventually be hit with depreciation recapture on an amount I wasn't able to actually deduct from my income. (For example, can I not depreciate anything in 2018 then and add a year at the end? Can I pick and choose like that?)

Thanks for any help/advice!

So the property income statements I'm seeing do not factor in depreciation, so they must be cash-based. But they also don't factor in corporate taxes, which is head-scratching for me, coming from corporate finance.

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Where are these items accounted for... obviously depreciation reduces the taxable base, and then corporate taxes reduce the cash distributable to investors in the property.

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Is there NO corporate tax on property?!? Because none of the models I'm seeing have it in there.

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If that's the case, then depreciation and the un-taxed cash flows from the property just flow to the investors personal tax statement?

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I'm wildly confused, please help me understand why these two items are missing from the models I'm seeing.

Location massachusetts