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2017 Vehicle Depreciation Limitations IRS Rev Proc 2017-29

According to IRS Rev Proc 2017-29 (assuming IRC 168(k) applies) 1st year magic numbers are: $11,160 for passenger autos $11,560 for Trucks and Vans The rev proc also details lease inclusion amounts. Be sure to understand whether additional first year depreciation deductions

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Posted in Depreciation

2015 Depreciation Deduction Limitations for Passenger Vehicles

Understanding depreciation schedules including method and life expectancy is one of many areas of the Internal Revenue Code that separate the wide ranging ranks of the tax practitioner community. It never ceases to amaze me how many bush league practitioners and

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Posted in Auto, Business Expense, Depreciation, Passenger Vehicle, Vehicle Expense

100% Bonus Depreciation – Revenue Procedure 2011-26

For those of you fortunate enough to have actually invested in your operations through the purchase of certain 'qualified property' last year you are going to want to read IRS Revenue Procedure 2011-26 which provides guidance on the new 100

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Application of Asset Classification Rules When Determining Cost Segregation Depreciation

Okay this is pretty huge in regards to some of the IRS Examination Appeals work I have been doing lately.  The bottom line is that you need to follow the asset classification rules if you are going to engage in

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Posted in Cost Segregation, Depreciation

Capital Equipment Expense example – Bonus Depreciation

If in December 2010 you purchased and placed in service a new piece of capital equipment to use in your business - say for example a farmer buys a new tractor and placed it in service in his farming business.

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Cost Segregation Depreciation

For income tax depreciation purposes there are two major types of assets: Sec. 1250 real property and Sec. 1245 personal property. When owners acquire commercial property or tenants invest in leasehold improvements, many only allocate the purchase price between land

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Posted in 1031 Exchange, Audit Reconsideration, Business Expense, Cost Segregation, Deductible Expense, Depreciation, Disallowed Expenses, Rental Real Estate, Tax Guidance & Preparation, Tax Problems & Requests, Tax Relief

Recapture 179 Depreciation Expense Deduction – example

Robert purchased a new heavy duty pick-up truck (rated over 6,000 lbs.) for use in his landscaping business. The vehicle is used 100% for business and Robert elected to expense $15,000 of the cost under §179. In 2009, Robert sold

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HIRE – Depreciation and Section 179 Expense

HIRE and Section 179 Deduction - A qualifying taxpayer can choose to treat the cost of certain property as an expense and deduct it in the year the property is placed in service instead of depreciating it over several years.

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Posted in Deductible Expense, Depreciation

SUV’s and Depreciation

In Revenue Procedure 2003-75, the IRS announced a separate set of luxury car depreciation limitations for trucks or vans that do not have a gross vehicle weight in excess of 6,000 pounds. In that revenue procedure, the IRS stated that

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Posted in Business Expense, Depreciation
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