Deductions and Write-Offs

Computer software used in a business or for investment purposes having a useful life of more than 1 year is depreciable over a 3 year life.

While 100% is reportable, only 50% of meals and entertainment are deductible on your business expense forms. • Be sure to keep good records on who was present, the dates and times, and the reasons for the entertainment and business discussions that took place. You may not deduct costs of meals and entertainment for personal reasons while traveling. If the trip is "primarily" business, most expenses will be considered as business expenses. If the trip is "primarily" personal and you conduct some minimal business, only those costs directly related to the business you conduct may be deductible.

Yes. If you meet the exclusive and regular use criteria, ownership of a cooperative apartment will qualify for a home office deduction. You may deduct depreciation based on your stock interest in the cooperative. Speak to your local CPA about your home office deductibility.

Depreciable real property is categorized as section 1250 property. For sales of section 1250 property, the part of long-term capital gain attributed to depreciation is taxed at a maximum tax rate of 25% and reportable on IRS Schedule D.

No. The loss on the sale of your car would be a sale of personal use property and therefore not deductible.

The purchase price must be allocated to the building and to the land. The amount allocated to the land is non-depreciable. The amount allocated to the building is depreciable and reported on IRS Form 4562.

No. Losses may not be deferred using an installment method.

You should use the date the rental property is available to be rented. It does not start the day the first tenant moves in.
Generally, residential rental properties use a straight line 27.5 year life with a midmonth convention and nonresidential real properties use a straight line 39 year life with a midmonth convention to determine the depreciation deduction that is reported on IRS Form 4562.
The midmonth convention assumes the property was placed in service in the middle of the month and is built into the IRS depreciation table.

Furniture would be considered 5 year property (having a 5 year useful life)for MACRS depreciation purposes in a rental property. Furniture and equipment, such as desks and files, would be considered 7 year property ( having a 7 year useful life)for MACRS depreciation purposes in a non-rental property such as in an office.