leep_s01[1] - Appendix B The Table of Class Lives and...

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Appendix B The Table of Class Lives and Recov- Table B-2. If the property is not listed land improvements under asset class in Table B-1, check Table B-2 to find ery Periods has two sections. The first 00.3. He then checks Table B-2 and the activity in which the property is section, Specific Depreciable Assets finds his activity, producing rubber being used and use the recovery pe- Used In All Business Activities, Except products, under asset class 30.1 Man- riod shown in the appropriate column As Noted, generally lists assets used ufacture of Rubber Products. Reading following the description. in all business activities. It is shown as the headings and descriptions under Table B-1. The second section, Depre- asset class 30.1, Sam finds that it does Property not in either table. ciable Assets Used In The Following If the activity or the property is not not include land improvements. There- Activities, describes assets used only included in either table, check the end fore, Sam uses the recovery period in certain activities. It is shown as Ta- of Table B-2 to find Certain Property under asset class 00.3. The land im- ble B-2. for Which Recovery Periods Assigned. provements have a 20-year class life This property generally has a recovery and a 15-year recovery period for How To Use the Tables period of 7 years for GDS or 12 years GDS. If he elects to use the ADS for ADS. For residential rental property method, the recovery period is 20 You will need to look at both Table B-1 and nonresidential real property see years. and B-2 to find the correct recovery Appendix A, Chart 2 or Which Recov- period. Generally, if the property is ery Period Applies? in chapter 3 for Example 3. Pam Martin owns a re- listed in Table B-1 you use the recov- recovery periods for both GDS and tail clothing store. During the year, she ery period shown in that table. How- ADS. purchased a desk and a cash register ever, if the property is specifically for use in her business. She checks listed in Table B-2 under the type of Example 1. Richard Green is a pa- Table B-1 and finds office furniture activity in which it is used, you use the per manufacturer. During the year, he recovery period listed under the activ- under asset class 00.11. Cash regis- made substantial improvements to the ity in that table. Use the tables in the ters are not listed in any of the asset land on which his paper plant is lo- order shown below to determine the cated. He checks Table B-1 and finds classes in Table B-1. She then checks recovery period of your depreciable land improvements under asset class Table B-2 and finds her activity, retail property. 00.3. He then checks Table B-2 and store, under asset class 57.0, Distribu- finds his activity, paper manufacturing, tive Trades and Services, which in- Table B-1. Check Table B-1 for a under asset class 26.1, Manufacture cludes “assets used in wholesale and description of the property. If it is de- of Pulp and Paper. He uses the recov- retail trade.” This asset class does not scribed in Table B-1, also check Table ery period under this asset class be-
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This note was uploaded on 05/12/2008 for the course IE 370 taught by Professor Leep during the Summer '08 term at University of Louisville.

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leep_s01[1] - Appendix B The Table of Class Lives and...

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