ed
On Apr 18, 4:05=A0pm, -hh <recscuba_goo...@huntzinger.com>wrote: ...

since they both cant be listed in the same column.

there's no reason to- just because you don't consider it an asset doesn't mean that the loan would be considered a asset. the car wouldn't be listed in *either* column- just as i wouldn't list all th=

random crap in my house that i could sell on ebay as an asset if i were working up my net worth, even though, technically, they'd be assets.

-hh
Oh, it is still an asset ... it's just that you're choosing to list it as a zero,

ed
i know. =A0and you know i know because that's what i said.

-hh
=A0in anticipation of depreciation & wear, etc.

ed
no. =A0because most people simply don't count a lot of 'stuff' as assets in household accounting. =A0do a test- ask as many people as you like to list their personal assets, and come back and tell us how many start listing household furnishings, clothes, nicknacks, etc. =A0it won't be many.

Similarly, even though we can agree that a car isn't a good investment, it is still=

colloquial "asset" from the aspect that it is a desirable/useful to=

to accomplish certain tasks.

and colloquially, a liability is something that costs you money. which cars do, even if it has no loan and has some value left. =A0tha=

why this isn't as straightforward (outside financial accounting and the law) as 'a car is an asset.'

-hh
Same is true of a house, too...so is it not an asset either? =A0Or even one that you'll list as a zero?

ed
sometimes, sometimes not. =A0examples already given.

... =A0just as i don't include the value of all my random crap th=

=A0could sell on ebay, as the purpose of me keeping track of asse=

and net worth is to see where i stand long term. =A0bookkeeping t=

=A0current value of a vehicle (and other assets) that will be wor=

=A0in 15 years adds nothing to that view. =A0ymmv.

Ah, but that's a question do appreciation vs depreciation,

not reall; maybe i should have left out the long view- i wouldn't include it in a view of my net worth NOW either. =A0;D

-hh
Oh, it's still a depreciation question... Which is also why you're willing to "fast forward" it to zero upfront.

as well as to what degree to ignore ankle-biters from the basic motivation of investments. =A0By the same type of logic, you would want to also n=

include your house, since you always need to live somewhere....righ=

if one were planning on living in their current house for the rest of their lives and passing it on to the kids(which some people do), that would not be a bad way of considering their house. =A0a million dolla=

house that you own free and clear does one no good if they are unwilling or unable to pull money out of it and live a poor life as a result. =A0but more practical people would clearly view a house with equity in it as an asset.

Which also follows conventional & general accepted accounting practices (GAAP).

ed
gaap is pretty irrelevant for personal accounting for most people. =A0i would guess that includes you. =A0unless you somehow manage your life on an accrual basis and pay mcdonalds on net30 terms i suppose. =A0:P

a house that's upside down might be a better example- technically it'=

an asset partially offsetting a large liability, but colloquially, you'll not get many people to agree THAT is an asset. =A0;D

-hh
On the contrary: =A0both are still assets -

ed
yes, i know. =A0you know i know because i said so.

now, tell me, colloquially, how many people, in general, do you think would consider an upside down house an asset?