Depreciation

Question 1

depreciation is a economic loss..

Answer 1

overtime. 1011

Question 2

deudction is depedent upon

Answer 2

bases in the property

Question 3

is land depreiable?

Answer 3

167- NOt hard land.

Question 4

What property isnt depreciable

Answer 4

stock, land, inventory

Question 5

why stock land, inventory not depreciable

Answer 5

deosnt go down in any predicable way

Question 6

can depreciate property if:

Answer 6

subject to wear, tear, exhaustion, obslesence OR held for production in income (investment income)

Question 7

depreciable prop doesnt get repair duedciton because..

Answer 7

depreciation takes care of it.

Question 8

167 authorizes

Answer 8

deduction for depreciation

Question 9

168 tells us how to

Answer 9

calculate amount of deduction

Question 10

7 items to tick off for depredication

Answer 10

1. Is it depreciable prop
2. What is taxpayers bases for depreciation
3. Recovery period
4. method of dep
   5 appropriate convention
   6 salvage value
   7 appropriate adjustment to bases

Question 11

Depreciable prop if:

Answer 11

used for trade bus; held for investment, AND subject to wear and tear, exhaustion, obsolesence

Question 12

is hard land depreciable?

Answer 12

no

Question 13

bases for depreciation

Answer 13

167 c- cost (bases in property)

Question 14

Recovery period:

Answer 14

outlined in regs:

Question 15

most bus expenses recovery periods

Answer 15

3, 5, 7, furniture, 7, cpus, 5

Question 16

property depreciaiton recovery periods

Answer 16

residential 27.5
commercial 39
sidewalks 15

Question 17

methods of depreciaiton

Answer 17

straight line, double declining balance

Question 18

straight line

Answer 18

cost/period. ALWAYS for buildings, (may go into next year) cause of conventions

Question 19

double declining balance

Answer 19

usses tables, use year 1 initial balance as multiple throughough

Question 20

if sell after completing depreciaiton

Answer 20

full amoint is subject to tax.

Question 21

conventions

Answer 21

half year, mid month for buildings

Question 22

conventions are important

Answer 22

when selling to max depreciaiton

Question 23

salvage value

Answer 23

abandoned by congress

Question 24

appropriate adjustment to bases

Answer 24

FROM SL OR ddb

Question 25

amortize means

Answer 25

depreciate