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Tax Form for Depreciation
Capital Gains Calculator 3 year property Year 5 refers to the portion
"Depreciable Basis"year property of an asset's basis subject
to the allowance of depreciation. Typically, the full section 1016
7 year property
basis is depreciable; however, for property converted from personal
to business use, the depreciable basis is limited to the lesser of the
1016 basis or fair market value at theA "convention" presumesTreas.
time of conversion. See that all
property is purchased or sold on the
Reg. section 1.167-7(a)(5).
same day. For example, the "mid60,000.00
year" convention sets all purchases
and sales on July 1 of a calendar
zero year. PerValue is the predicted midSalvage section 168(d)(1), the
DDB year convention is presumed for 3, 5,
amount for which the property
and be sold at the But, see
mid-year7 year property. end of itssection
useful life. if more than 40% of
168(d)(3) For purposes of
Depreciation Methods include:the depreciableplaced into value is during
Type in Straight sectionis salvage service
presumed to be6
Line, Declining Balance, Double Declining the final quarter of the year.
bSum of the Year's box.
asis in the red
Balance, Unit of Use, and
Digits. Per Section 168(b)(1)(A), the on the
applicable depreciation method is recovery
presumed to be "double declining balance"
for 3, 5, and 7 year property. 168 Deduction
8,886.00 4,446.00 This does not apply to property affected by
sections 179 or 280F.
© Steven J. Willis 2001 1 ...
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- Fall '11
- Depreciation, Applicable Depreciation Method, depreciation method, depreciable basis, Steven J. Willis