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Unformatted text preview: Note: Does not include personal assets, such as personal residence or personal automobiles. Depreciation: Advanced recuperation of cost of property. Section 168: How to calculate depreciation Depreciation trend has been to accelerate (ARCS was too fast, MACRS replaced it but still better than SL). What kinds of things are depreciable? Harrahs Club: Restoration of cars not depreciable because they didnt wear out or become obsolete. Also no salvage value and usually appreciate. Simon and Liddle: Violin bows did wear out when being actively used. But art does not depreciate. Even if the bows are going to go up in value, that does not disallow depreciation. And if wont wear out in 100 years, still not grounds for disallowance of depreciation....
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- Fall '06