Bonus and/or MACRS Depreciation Method

Question 1

MACRS, Bonus and MACR Bonus

Answer 1

-MARCS for class life vehicles is 5 years
-Use the lesser the cost or FMV

-Assets converted from personal to bus use are not eligible for bonus deprecation.

-Assets acquired from related party are not eligible for bonus depreciation.

-Purchase new or used from a bus for bus property can depreciate for 20 years or less and it has bonus depreciation
——— Original cost * .60% = Bonus depreciation
———– Bonus depreciation - original cost = MACRS
————-MACRS * .20% = Total MACRS
————-MACRS + Bonus depreciation = Deprecation total

-Asset received as a gift are the donors basic (original cost) and not eligible for bonus depreciation - Only MACRS

-Asset that are inherited (not gifted) use the FMV on date of death - and not eligible for bonus depreciation - Only MACRS