Deductions and Write-Offs
The most frequently asked tax questions related to Deductions and Write-Offs
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Answer Tax QuestionsDepreciation - Alternative Depreciation System (ADS)
Asked Wednesday, October 04, 2000 by an anonymous user
No. You may elect to use an Alternative Depreciation System (ADS) which applies straight-line depreciation over the applicable ADS recovery period. This is in contrast to the MACRS double-declining method which would generally yield a higher deduction in the earlier years.
Claim your parent - lives with you as a dependent and receiving social security
Asked Tuesday, October 03, 2000 by an anonymous user
Probably yes. Gross income for the dependent test does not include non-taxable social security, tax exempt interest or gifts.
For tax year 2013, if his gross income is less than $3,900, then he satisfies the gross income test criteria for claiming him as dependent.
Speak to your local CPA to verify if your father meets the other 4 dependency tests so you can claim him as a dependent.
For tax year 2013, if his gross income is less than $3,900, then he satisfies the gross income test criteria for claiming him as dependent.
Speak to your local CPA to verify if your father meets the other 4 dependency tests so you can claim him as a dependent.
Depreciation - 3 year property
Asked Tuesday, October 03, 2000 by an anonymous user
MACRS 3 year property includes race horses over 2 years old when placed in service, non-race horses more than 12 years old when placed in service,
qualified rent to own property,
special tools used in the manufacture of plastic products or rubber products, or motor vehicles. .
qualified rent to own property,
special tools used in the manufacture of plastic products or rubber products, or motor vehicles. .
Depreciation - 5 year property
Asked Tuesday, October 03, 2000 by an anonymous user
MACRS 5 year property includes cars, taxis, buses, light general purpose trucks (less than 13,000 lbs),
typewriters, calculators, copiers, duplicating machines, computers and peripheral equipment, including appliances,
carpets, furniture used in a residential rental real estate activity,
breeding cattle and dairy cattle and property used in research and development.
typewriters, calculators, copiers, duplicating machines, computers and peripheral equipment, including appliances,
carpets, furniture used in a residential rental real estate activity,
breeding cattle and dairy cattle and property used in research and development.
Depreciation - 7 year property
Asked Tuesday, October 03, 2000 by an anonymous user
MACRS 7 year property includes office furniture and fixtures such as desks, files, safes, cellular phones, fax machines and any property that does not have a class life and not classified by the IRS.
Depreciation - 20 year property
Asked Tuesday, October 03, 2000 by an anonymous user
Most tangible, depreciable property placed in service after 1986 is called MACRS property. MACRS 20-year property includes farm buildings other than agricultural or horticultural structures and some municipal sewers not classified as 25 year property,
Depreciation - 25 year property
Asked Tuesday, October 03, 2000 by an anonymous user
Most tangible, depreciable property placed in service after 1986 is called MACRS property. MACRS 25 year property includes certain water utility property.
Depreciation - rental property life
Asked Tuesday, October 03, 2000 by an anonymous user
For rental property placed in service after December 31, 1986 the
depreciation cost is recovered over 27.5 years.
Only the cost of the structure is allowed as a depreciation deduction; the value of land cannot be depreciated.
If the property is used for commercial purposes, it must be depreciated over 39 years.
Only the cost of the structure is allowed as a depreciation deduction; the value of land cannot be depreciated.
If the property is used for commercial purposes, it must be depreciated over 39 years.
Depreciation - rental improvements
Asked Tuesday, October 03, 2000 by an anonymous user
For a rental property with a class life of 27.5, the roof (improvement) would also use 27.5 as the recovery period. For a non-residential commercial building treated as 39 years MACRS property, the roof would also use 39 years.
Additions and improvements to a property are depreciated under MACRS in the same way as the deduction for the property would be figured if the property had been put in service at the same time as the addition or improvement.
Additions and improvements to a property are depreciated under MACRS in the same way as the deduction for the property would be figured if the property had been put in service at the same time as the addition or improvement.
