Depreciation

Comprehensive coverage of depreciation, amortization, and depletion pertaining to business property and other tangible assets.

Start Ship Date: 12/15/24

$89

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
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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Depreciation

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Depreciation

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Time is Money

Look Good

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Use the Best

Rated 5 Stars on Google

Satisfied Customers

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