Depreciation
The most frequently asked tax questions related to Depreciation
For Tax Payers
Need professional help with a specific tax issue or have general tax questions? Ask a CPA is the easiest way to get advice from a licensed accountant in our network.
Ask a Tax QuestionFor Accountants
Provide answers to tax questions and introduce your practice to new potential clients. Build your CPAdirectory profile and earn reputation points.
Answer Tax QuestionsDepreciation - Land depreciation
Asked Monday, November 27, 2000 by an anonymous user
Land is not depreciable.
Depreciation - trees & bushes
Asked Monday, November 27, 2000 by an anonymous user
Trees and bushes planted on your business property can be depreciated over a 15 year period. Landscapping service expenses can be deducted in the year performed.
Inventory
Asked Monday, November 27, 2000 by an anonymous user
Property includable in inventory is not depreciable. Beginning and ending and purchased inventory costs are used in your cost of goods sold calculation to determine your gross profit.
Depreciation - Farmland
Asked Monday, November 27, 2000 by an anonymous user
Farmland is not depreciable. Farm Buildings and machinery used on the farm are depreciable.
Depreciation - 15 year property
Asked Wednesday, November 08, 2000 by an anonymous user
15 year property includes any municipal wastewater treatment plant, any telephone distribution plant and comparable equipment used for 2-way exchange of voice and data communication, any qualified restaurant property that is a building, any qualified leasehold improvement property, any section 1250 property that is a retail motor fuels outlet whether or not food or other convenience items are sold there, initial clearing and grading land improvements for gas utility property, certain electric transmission property.
Depreciation - Nonresidential real estate - 39 year property
Asked Wednesday, November 08, 2000 by an anonymous user
Nonresidential real property is real property that is not residential real property or property with a class life of less than 27.5 years.
For nonresidential real property placed in service after 1986 and before 5/13/93 the cost is to be recovered over 31.5 years not 39.
For nonresidential real property placed in service after 1986 and before 5/13/93 the cost is to be recovered over 31.5 years not 39.
MACRS - definition
Asked Wednesday, October 18, 2000 by an anonymous user
MACRS is the abbreviation for Modified Accelerated Cost Recovery System. It is a statutory method of depreciation allowing accelerated rates for most types of property used in a business or income producing activities.
Depreciation - 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.
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.