Text Notes Ch 9 - Capital Recover Depreciation, Amortization, and Depletion

Text Notes Ch 9 - Capital Recover Depreciation, Amortization, and Depletion

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Prop used in trade or bus or held for production of income that is subject to exhaustion, wear, tear or obsolescence a. Prop w/ definite life b. Dual purpose prop - only bus portion subject to dep c. Property subject to depreciation includes: 1. Prop owned or used by taxpayer or related aprty prior to 1987 i. Autp, if standard mileage rate was previously used ii. Certain other prop iii. May NOT be used for: a. Cost recovered over statuary "recovery periods" - example 3, 5, 7, 10, 15, 20, 27.5 or 39 years b. Salvage val ignored c. Recovery period - appropriate period depends on class of property - chart included i. ii. 1/2 yr applies to personal prop - 1/2 year dep in year of acquisition & dispo 1) 2) Of applies it replaces 1/2 year convention for all personal prop placed in service during year a) All personal prop treated as being placed in service in the middle of the quarter it was actually placed in service - problem 9-28 b) Mid-quarter - personal prop only if ore than 40% of all personal prop placed in service during year is in the last 3 months of year 3)
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This note was uploaded on 09/08/2010 for the course BUS 123A at San Jose State.

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Text Notes Ch 9 - Capital Recover Depreciation, Amortization, and Depletion

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