ReCircular IT Credits
The Challenges With The Current Models
The Linear Model
We all know of the model. Reduce, Reuse and Recycle. The real challenge when it comes to Sustainability is the consumption model. If we are truly to do the right thing by the environment then we limit our buying and learn to use what is already available.
The pre-owned marketplace is estimated to be around $2 billion and is a mature market.
The true circular ecomomy is about making sure what we consume has the least impact. That what we dont need goes to a good home.
Financial Practices
If an asset that has been fully depreciated to zero is sold, any proceeds from the sale would typically need to be declared for tax purposes. Here's why:
Capital Gain or Loss:
When you sell an asset, the difference between the selling price and the asset's adjusted basis (which may be zero if fully depreciated) results in either a capital gain or a capital loss. If the selling price exceeds the adjusted basis, you have a capital gain. If the selling price is less than the adjusted basis, you have a capital loss.
Tax Implications:
Capital gains are generally taxable, while capital losses may be deductible against capital gains or ordinary income, subject to certain limitations and rules in your tax jurisdiction.
Reporting Requirements:
Depending on your tax jurisdiction and the nature of the asset, you may need to report the sale and any resulting gain or loss on your tax return. This typically involves completing specific forms or schedules provided by the tax authorities.
Documentation:
It's important to keep accurate records of the sale, including the selling price, the original cost basis of the asset, any depreciation taken over its useful life, and any expenses related to the sale (such as brokerage fees). This documentation will help you accurately calculate and report any capital gain or loss on your tax return.
In summary, even if an asset has been fully depreciated to zero before being sold, any profit from the sale is generally subject to tax and should be declared according to the tax laws in your jurisdiction. Many accounting teams struggle with this and often refuse accepting any profits. This means that e-waste company not only makes money from the cost they charge to you for disposing of the prodcuts they also make money from then onselling the products.
Our Promise
What Recirc IT promises is that we will take away your old assets and provide value for those for you to use as credits for the Circluar IT products from us. Those could include consumables, cables, optics or switches.
You might want to read more on how we can help you extend the life of the assets that you have, but for the ones that you need to replace lets make sure that they can go to a good home and that you recieve some value from them.
Read below to understand how it all works
Send Us Your Old Asset List Here
What Products Do We Trade?
Networking Hardware
Most networking hardware, including routers, switches & firewalls. Most will contain some value to be broken down due to the raw materials
Servers & Storage
Servers and Storage often contain some value and can be repurposed. We handle all security implications of ensuring devices are wiped.
Desktops & Laptops
Typically most laptops and desktops contain some kind of value or can be resold. We can have the information wiped onsite.
What Recirc IT are doing is changing the game in both procurement and e-waste. We were typically always paying to have assets taken away. We now have true peace of mind that we are making a positive impact for the environment and for our shareholders
- Susan K. - Manager Infrastructure & Technology