MGMT 127A Lecture Notes - Lecture 15: Macrs
Document Summary
Section 167 depreciation: a depreciation deduction is reasonably allowed for the exhaustion and wear and tear of: property used in the trade or business or, property held for the production of income. Non residential realty: 39 years: use mid month convention. Treat mixed purpose assets (assets used for business use, investment use, and personal use) as distinct tax assets. Calculate three separate bases and the sum of these is the overall basis when the asset is sold. Permits a taxpayer in the year of acquiring the asset to expense up to the section 179 amount of the asset. To qualify, it has to be tangible depreciable personalty used in a business. So section 179 allows you to expense personalty immediately rather than depreciate. Section 179 deduction is per year, not per asset. The amount is 500k (extended by the protecting americans from tax hikes act of. Phase-out: per spent over 2 million.
