Depreciation Flashcards
1
Q
What is necessary to qualify for Section 179?
A
- Property = tangible personal property
- Unrelated party
- Use in active/trade in business
2
Q
What MACRS convention is used for personal property?
A
Mid year or Mid quarter convention
3
Q
What MACRS convention is used for Real Property?
A
Mid month convention
4
Q
What type of property and MACRS convention is used for equipment/machines?
A
Personal property so either mid year or mid quarter MACRS convention
5
Q
What depreciation method is used for nonresidential real property?
A
39 years, straight line
6
Q
How many years is Section 197 intangibles amortized for?
A
15 years
7
Q
What depreciation method is used for residential rental property?
A
27.5 year straight line
8
Q
How is salvage value treated within MACRS?
A
It is ignored
9
Q
A
