summary_tax_depreciation_rules

summary_tax_depreciation_rules - Summary of Tax...

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Summary of Tax Depreciation Rules (1981-present) Income Tax AMT ACE Regular depreciation (pre-1981 acquisitions) Regular accounting rules (straight line, sum-of-the- years’-digits, declining balance family). No tables. Buildings: straight line over estimated life. Equipment: same as income tax depreciation. (As item is a tax preference, not an adjustment, the amount cannot be less than income tax depreciation. No table. Use regular income tax depreciation. No table. ACRS (1981-1986 acquisitions) Most personal property was 3 or 5 years and now is fully depreciated. Real property is 15, 18, or 19 years depending on when acquired. Use ACRS tables. Buildings: straight line over 15, 18, or 19 years. Equipment: Same as income tax depreciation and now is fully depreciated. (As item is a tax preference, not an adjustment, amount cannot be less than income tax depreciation.) The remaining basis (at the end of 1989) for regular income tax purposes is recovered over the remaining ADS life using straight line. No table.
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