Comprehensive coverage of depreciation, amortization, and depletion pertaining to business property and other tangible assets.
Start Ship Date: 12/15/24


About the Depreciation

Depreciation Tab Contents
Tab Tab Title
Tab 1
Whats New and Depreciation Overview
  • Adjustments to Basis Examples Chart
  • Depreciable Property Chart
  • Repairs vs. Improvements Chart
  • Leased Property—Incidents of Ownership Chart
  • Form 4562, Depreciation and Amortization Chart
  • Expiring Tax Provisions Chart
  • What's New Chart
  • Depreciation Overview
    • Basics of Depreciation
    • Placed in Service Date
    • Depreciation Allowed or Allowable
    • Property Requirements
    • Property Owned By the Taxpayer
    • Property Used in Business or Income-Producing Activity
    • Property Having a Determinable Useful Life
    • Property Lasting More Than One Year
    • Non-Depreciable Assets
    • Intangible Property
    • Cost Basis
    • Real Property
    • Adjusted Basis
    • Other Basis
  • Repairs and Improvements
    • Repairs and Improvements Flow Chart
    • Tangible Property Regulations
    • Improvements—Capitalization Required
    • Materials and Supplies
    • De Minimis Safe Harbor Election
    • Routine Maintenance Safe Harbor
    • Capitalize Repair and Maintenance Costs Election
    • Small Taxpayer Safe Harbor Election
    • Remodel-Refresh Safe Harbor
  • Leased Property
    • Rental of Property Used in Business
    • Lease or Purchase
    • Capitalizing Rent Expenses
    • Improvements by Lessee
    • Taxes on Leased Business Property
    • Cost of Getting a Lease
Tab 2
Section 179 and Special Depreciation
  • Common Property for Section 179 Deduction Chart
  • Section 179 Maximum Deduction and Investment Limit Chart
  • Special Depreciation Allowance Percentages Chart
  • Section 179 vs. Special Depreciation Chart
  • Section 179 Deduction
    • Section 179
    • Section 179 Limitations
    • Business Income Limit
    • Partnerships and S Corporations
    • Other Corporations
    • Situations That Affect Limits
    • Section 179 Property
    • Qualifying Property
    • Nonqualifying Property
    • Section 179 Carryover
    • Section 179 Election/Revocation
    • Section 179 Recapture
  • Special Depreciation Allowance
    • Special Depreciation (Bonus Depreciation)
    • Qualifying Property
    • Nonqualifying Property
    • Claiming Special Depreciation
    • Depreciable Basis
    • Special Depreciation Comparison Chart
    • Special Depreciation Recapture
    • Ordering Rules
    • Section 179 Deduction vs. Special Depreciation Allowance
Tab 3
Depreciation Fundamentals
  • AMT Depreciation Adjustments Chart
  • Half-Year Convention Depreciation Rates Chart
  • MACRS Recovery Periods for Commonly-Used Assets Chart
  • Recovering the Cost of Computer Software Chart
  • MACRS Recovery Periods Chart
  • MACRS Depreciation
    • Form 4562, Depreciation and Amortization
    • Regular MACRS (GDS)
    • Alternative Depreciation System (ADS)
    • Property Classes Under GDS
    • Computer Software
    • Placed-in-Service Date
    • Recovery Periods
    • Conventions
    • MACRS Depreciation Methods
    • Comparison of MACRS Depreciation Methods
  • Computing Depreciation
    • MACRS Percentage Tables
    • MACRS Worksheet
    • Computing the Deduction Without Using the Tables
    • Using the Applicable Convention
    • Examples
  • Farming Assets Depreciation
    • Property Used in Farming Business
    • Uniform Capitalization Rules for Farmers
  • Short Tax Year Depreciation
    • Short Tax Year
    • Short Tax Year Conventions
    • Computing Depreciation in a Short Tax Year
    • Short-Year Depreciation Formulas (First Year)
  • General Asset Account (GAA)
    • GAA Election
  • Depreciation Adjustments for Alternative Minimum Tax
    • AMT Depreciation Adjustments
  • Miscellaneous Depreciation Issues
    • Income Forecast Method [IRC §167(g)]
    • Unit of Production Method
    • Unit of Production Formula
    • Abandonment
    • Idle Property
    • Change of Use—MACRS Property
    • Indian Reservation Property
  • ACRS
    • Depreciation Recapture on Real Property Depreciated Under ACRS
Tab 4
MACRS Depreciation Tables
  • MACRS Recovery Periods for Commonly-Used Assets
  • MACRS Depreciation Tables Index
  • Half-Year Convention Depreciation Rates
  • Table A. 3-Year MACRS Property
  • Table B. 5-Year MACRS Property
  • Table C. 7-Year MACRS Property
  • Table D. 10-Year MACRS Property
  • Table E. 15-Year MACRS Property
  • Table F. 20-Year MACRS Property
  • Table G. Residential Rental Property Mid-Month Convention Straight Line—27.5 Years (GDS)
  • Table H. Nonresidential Real Property Mid-Month Convention Straight Line—31.5 Years (GDS)
  • Table I. Nonresidential Real Property Mid-Month Convention Straight Line—39 Years (GDS)
  • Table J. Straight Line Method Half-Year Convention
  • Table K. Straight Line Method Mid-Quarter Convention Placed in Service in First Quarter
  • Table L. Straight Line Method Mid-Quarter Convention Placed in Service in Second Quarter
  • Table M. Straight Line Method Mid-Quarter Convention Placed in Service in Third Quarter
  • Table N. Straight Line Method Mid-Quarter Convention Placed in Service in Fourth Quarter
  • Table O. Residential Rental Property Placed in Service After 2017 Straight Line Mid-Month Convention—30 Years (ADS)
  • Table P. Straight Line Mid-Month Convention—40 Years
  • Table Q. 150% Declining Balance Method Half-Year Convention
  • Table R. 150% Declining Balance Method Mid-Quarter Convention Property Placed in Service in First Quarter
  • Table S. 150% Declining Balance Method Mid-Quarter Convention Property Placed in Service in Second Quarter
  • Table T. 150% Declining Balance Method Mid-Quarter Convention Property Placed in Service in Third Quarter
  • Table U. 150% Declining Balance Method Mid-Quarter Convention Property Placed in Service in Fourth Quarter
  • Qualified Indian Reservation Property Tables for Property Placed in Service Before 2022
    • Table V. 2-Year Qualified Indian Reservation Property Half-Year and Mid-Quarter Conventions
    • Table W. 4-Year Qualified Indian Reservation Property Half-Year and Mid-Quarter Conventions
    • Table X. 6-Year Qualified Indian Reservation Property Half-Year and Mid-Quarter Conventions
    • Table Y. Qualified Nonresidential Real Indian Reservation Property Mid-Month Convention Straight Line—22 Years
  • Revenue Procedure 87-56, Recovery Classes, Class Lives, and Recovery Periods
    • Sec. 1. Purpose
    • Sec. 2. General Rules of Application
    • Sec. 3. Assigned Property With Assigned Class Lives, Recovery Classes, or Recovery Periods
    • Sec. 4. Prescription and Modification of Class Lives
    • Sec. 5. Tables of Class Lives and Recovery Periods
    • Sec. 6. Effect on Other Revenue Procedures
  • Tables of Class Lives and Recovery Periods
    • How To Use the Tables
    • Table 1. Table of Class Lives and Recovery Periods
    • Table 2. Table of Class Lives and Recovery Periods
Tab 5
Automobiles and Listed Property
  • Vehicle Depreciation Limitations (Section 280F) Chart
  • Section 179 Limits Chart
  • Standard Mileage Rate Per Mile Chart
  • When Are Transportation Expenses Deductible?
  • Auto Expenses Summary
  • Listed Property
    • Rules for Listed Property
    • Depreciation for Listed Property
    • Qualified Business Use
    • Lessee's Inclusion Amount—Other Than Passenger Automobiles
    • Recordkeeping for Listed Property
    • Reporting Listed Property
  • Business Autos
    • Business Use of Auto
    • Transportation vs. Travel
    • Commuting
    • Office in Home—Commuting Exception
  • Standard Mileage Rate vs. Actual Expenses
    • Standard Mileage Rate Method
    • Actual Expense Method
  • Luxury Auto Limits (Section 280F)
    • Section 280F Depreciation Limits
    • Qualified Nonpersonal-Use Vehicles
  • MACRS Depreciation on Business Autos
    • MACRS Depreciation on Business Autos
    • Depreciation After End of Recovery Period
    • Converting Personal-Use Auto to Business Use
    • Converting Business -Use Auto to Personal Use
    • Depreciation Recapture
    • Sale of Business Auto
    • Business Auto Trade-In Rules
    • Leased Autos
  • Vehicle Credits
    • Depreciation
    • Alternative Motor Vehicle Credit (Form 8910)
    • Alternative Fuel Vehicle Refueling Property Credit (Form 8911)
    • Qualified Plug-In Electric Drive Motor Vehicle Credit (Form 8936)
  • Lease Inclusion Tables
  • Rates to Compute Inclusion Amounts for Leased Listed Property
  • Business Mileage and Expense Log
Tab 6
Real Property
  • MACRS Recovery Periods for Property Used in Rental Activities Chart
  • Farming Property and Buildings Recovery Periods Chart
  • Real Property Chart
  • Qualified Real Property Chart
  • Business Use of Home Methods Chart
  • Real Property
    • Property Requirements
    • Basis of Real Property
    • MACRS
    • Section 179 Deduction
    • Special Depreciation Allowance
    • Land
    • Roads
    • Parking
    • Signs and Billboards
    • Retail Motor Fuels Outlet
  • Rental Real Estate
    • Residential Rental Property
    • Depreciation Methods for Residential Rental Property
    • Conversion of Personal Property to Rental Use
    • Cooperatives
    • Nonresidential Real Property
    • Sale of Rental Property
  • Business Use of Home
    • Regular Method
    • Simplified Method
    • Employee Business Use of Home
    • Reporting Expenses for Business Use of the Home
  • Farm Buildings and Real Property
    • Land
    • Farm Buildings
    • Section 179 Eligible Property
    • Special Depreciation Eligible Property
    • Listed Property
    • Like-Kind Exchanges
    • Depletion
  • Qualified Improvement Property
  • Cost Segregation
    • Buildings and Structural Components
    • Cost Segregation Studies
  • Cost Segregation Court Cases—Real vs. Personal Property
  • Asset Classification—Hotel/Casino Industry
  • Asset Classification—Restaurant Industry
  • Asset Classification—Retail Industries
  • Asset Classification—Pharmaceutical and Biotechnology
  • Asset Classification—Auto Dealership Industry
  • Asset Classification—Auto Manufacturing Industry
  • Asset Classification—Electrical Distribution System
  • Asset Classification—Stand-Alone Open-Air Parking Structure
Tab 7
Amortization and Intangible Assets
  • Recovering the Cost of Computer Software Chart
  • Organizational Costs Chart
  • Intangibles Code Section Chart
  • Start-Up and Organizational Cost Deduction Limits Chart
  • Amortization
    • Amortizing Intangibles
    • Form 4562, Depreciation and Amortization
  • Section 197 Intangibles
    • Amortizing Section 197 Intangibles
    • Section 197 Intangibles Defined
    • Assets That Are Not Section 197 Intangibles
    • Safe Harbor for Creative Property Costs
    • Anti-Churning Rules
    • Incorrect Amount of Amortization Deducted
  • Disposition of Section 197 Intangibles
  • Business Start-Up Costs and Organizational Costs
    • Business Start-Up Costs
    • Costs of Organizing a Corporation
    • Costs of Organizing a Partnership
    • Amortization and Deduction
    • How to Make the Amortization Election
  • Getting a Lease
    • Leased Business Property
  • Points
    • Home Mortgage Points
    • Business and Investment Property
  • Research and Experimental Costs
  • Reforestation Costs
  • Geological and Geophysical Costs
  • Income Forecast Method
  • Pollution Control Facilities
  • Optional Write-Off of Certain Tax Preferences
Tab 8
Disposition, Sales, and Depreciation Recapture
  • Types of Property Chart
  • Reporting Sales of Business Property (Form 4797) Chart
  • Gain on Sale of Business Property Chart
  • Dispositions and Sales
    • Disposing of Business Property
    • Capital Gain Tax Rates
    • Section 1231 Transactions
    • Section 1231 Gains and Losses
    • Depreciation Recapture
    • General Asset Accounts
    • Section 1245 Property
    • Section 1245 Gain Treated as Ordinary Income
    • Section 1250 Property
    • Sale of MACRS Real Property
    • Additional Depreciation
    • Applicable Percentage
    • Section 1250 Gain Treated as Ordinary Income
    • Unrecaptured Section 1250 Gain
    • Reporting on Form 4797, Sales of Business Property
    • Dispositions of Improved Property
    • Net Investment Income Tax
  • Depreciation Recapture—Other Situations
    • Depreciation Recapture—Section 179
    • Depreciation Recapture—Special Depreciation Allowance
    • Excess Depreciation—Listed Property
    • Gifts
    • Transfers at Death
    • Multiple Property Dispositions
  • Other Dispositions
    • Sale of a Business
    • Dispositions of Intangible Property
    • Subdivision of Land
    • Timber
    • Precious Metals and Stones, Stamps, and Coins
    • Coal and Iron Ore
    • Conversion Transactions
    • Qualified Opportunity Fund
    • Virtual Currency
  • Farm Dispositions
    • Sales of Farm Products
    • Dispositions of Farm Assets
    • Farm Depreciation Recapture
    • Sale of a Farm
  • Installment Sales
    • Installment Sale Income (Form 6252)
    • Calculating Installment Sale Income
    • Reporting Installment Sale Income
    • Interest on Deferred Tax
    • Installment Sale to a Related Party
    • Buyer Assumes Mortgage
    • Selling Price Reduced in Subsequent Year
    • Unrecaptured Section 1250 Gain—Installment Sale
    • Pledge Rule (Installment Obligations Used as Security)
    • Electing Out of an Installment Sale
    • Installment Sale Depreciation Recapture
  • Foreclosure or Repossession
    • Foreclosure or Repossession—Buyer
    • Seller's (Lender's) Gain or Loss on Repossession
    • Installment Sale Repossessions
Tab 9
Like-Kind Exchanges and Involuntary Conversions
  • Basis of Replacement Property Chart
  • Depreciation After Exchange or Conversion Chart
  • Property Requirements Like-Kind Exchange Chart
  • Like-Kind Property Chart
  • Like-Kind Exchange—Gain Realized Chart
  • Like-Kind Exchange—Gain Recognized Chart
  • Involuntary Conversions Chart
  • Like-Kind Exchanges
    • Property Requirements Like-Kind Exchange
    • Gain Recognized
    • Basis of Like-Kind Property Received
    • Related Parties
    • Reporting Like-Kind Exchanges, Form 8824
    • Deferred Exchanges
    • Safe Harbors Against Actual and Constructive Receipt in Deferred Exchanges
    • Parking Transactions
    • Partially Nontaxable Exchanges
    • Multiple Property Exchanges
    • Partial Dispositions of MACRS Property
  • Involuntary Conversions
    • Condemnations
    • Gain or Loss From Condemnations
    • Postponement of Gain
    • Replacement Property
    • Replacement Period
    • Determining When Gain is Realized
    • Election to Postpone Gain
    • Reporting a Condemnation Gain or Loss
  • Depreciation for Like-Kind Exchanges and Involuntary Conversions
    • Depreciating Replacement Property
    • Default Rules Summary
    • Determination of Depreciation Allowance
    • Election Out of Depreciation Default Rules
    • Property Acquired in a Nontaxable Transfer
  • Form 8824 Illustrated Example
Tab 10
  • Depletion Methods Chart
  • Economic Interest Chart
  • Percentage Depletion Use Chart
  • Deposits Percentage Depletion Rates [IRC §613(b)] Chart
  • Oil or Gas Percentage Depletion Rates Chart
  • Depletion
    • Depletion Deduction
    • Economic Interest in Mineral Property or Timber
    • Alternative Minimum Tax (AMT) Adjustment
  • Depletion Methods
    • Cost Depletion
    • Percentage Depletion
  • Mineral Property
    • Lessor's Gross Income
  • Oil and Gas Wells
    • Economic Interest in Oil or Gas Property
    • Percentage Depletion—Oil and Gas Wells
    • Calculating Percentage Depletion
    • Partnerships and S Corporations
    • Enhanced Oil Recovery Credit (Form 8830)
    • Natural Gas Wells
  • Mines and Geothermal Deposits
    • Mines and Other Natural Deposits
    • Geothermal Deposits
  • Timber
    • Timber Depletion
    • Elections
    • Form T (Timber), Forest Activities Schedule
Tab 11
Depreciation Changes and Errors
  • Changing Depreciation Accounting Methods Chart
  • Correcting Depreciation Errors Chart
  • IRC Section 481(a) Adjustment Recognition Period Chart
  • Common Depreciation Automatic Accounting Method Changes for Form 3115 Chart
  • How to Correct Depreciation Errors
  • Filing an Amended Return
  • Requesting a Change in Accounting Method
    • Change in Accounting Method
    • IRC Section 481(a) Adjustment
    • Taxpayers Under Examination
  • Depreciation Errors on Disposed of Assets
    • Gain or Loss on Asset Disposition
    • Making the Change
  • Example for Filled-In Form 3115

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