by desertboots » Sun Feb 01, 2015 10:24 pm
Is my general contractor allowed to keep the recovered depreciation. She wrote it in contract. She says its part of her profit. But there is already a section noted where she will be making her 20% in overhead and profit.
Just because its written in contract and signed, am I held legally to that, even if she isn't supposed to collect that.
Just because its written in contract and signed, am I held legally to that, even if she isn't supposed to collect that.
Posted: Wed Feb 04, 2015 02:43 am Post Subject: response
I thought I could put this toward the cost of my floor which was depreciated by 1/3.
Posted: Wed Feb 04, 2015 05:13 am Post Subject:
Recoverable depreciation is the difference between the cost to replace and the value of the old flooring. Let's look at some numbers:
$5000 to install a new floor
$4000 value of old floor.
So you would be initally paid $4000 for a $5000 job. Once it's done you get paid the recoverable depreciation of $1000. Yes, you owe this to the contractor as that was the price of the job. The contractor needs to pay the people that they hired. It does not matter if those people cost $2000, $5000 or $10,000... you agreed to pay the contractor $5000.
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