Your browser is not supported by this site. Please update to the latest version, or use a different browser for the best experience.

  • Federal Depreciation Handbook
    • Chapter 1 Depreciation Basics
      • When Depreciation Begins
      • When Depreciation Ends
      • Who Is Entitled to the Depreciation Deduction?
      • Leased Property
      • Basis for Depreciation When a Business is Acquired
      • Reporting—Form 4562
    • Chapter 2 Depreciable Property
      • What Property Can Be Depreciated?
      • Lease vs. Purchase
      • Depreciable Basis
      • Tangible Property Regulations
      • Property Acquired By Purchase
      • Currently Deductible Repairs
      • Capitalized Improvements
      • Materials and Supplies
      • Rotable, Temporary, And Standby Emergency Spare Parts
      • Inherited Property
      • Property Acquired as a Gift
      • Property Acquired in Tax-Free Transactions
    • Chapter 3 MACRS Summary
      • General Depreciation System (GDS)
      • Alternative Depreciation System (ADS)
      • Assigning the Recovery Period
      • Conventions
      • Computing Depreciation
      • Placed In and Taken Out of Service
      • Alternative Minimum Tax (AMT) Depreciation
      • Farm Property
      • Short Tax Years
      • Special (Bonus) Depreciation
      • Qualified Disaster Assistance Property
      • General Asset Accounts
      • Changes in an Asset’s Use
      • Depreciable Property and Cost Recovery Tax Info Sheet (2020)
    • Chapter 4 MACRS in Depth
      • Applicable Conventions
      • Three-Year MACRS Recovery Property
      • Five-Year MACRS Recovery Property
      • Seven-Year MACRS Recovery Property
      • 10-Year MACRS Recovery Property
      • 15-Year MACRS Recovery Property
      • 20-Year MACRS Recovery Property
      • CARES Act Qualified Improvement Property Fix
      • Real Property
      • Ineligible MACRS Property
      • General Asset Accounts and Multiple Asset Accounts
    • Chapter 5 Bonus Depreciation in Depth
      • General Rules and Effective Dates
      • Qualified Property for Section 168(k) Bonus Depreciation
      • Original Use Test for Section 168(k) Bonus Depreciation
      • Timely Acquisition Test for Section 168(k) Bonus Depreciation
      • Placed-in-Service Test for Section 168(k) Bonus Depreciation
      • Election Not to Claim Bonus Depreciation
      • Bonus Depreciation for New York (NY) Liberty Zone Property
      • Bonus Depreciation for Qualified Gulf Opportunity (GO) Zone Property
      • Bonus Depreciation for Qualified Recovery Assistance Property Located in the Kansas Disaster Area
      • Bonus Depreciation for Qualified Disaster Assistance Property
      • Bonus Depreciation for Biofuel Plant Property
      • Bonus Depreciation for Qualified Reuse and Recycling Property
    • Chapter 6 MACRS Depreciation Tables
    • Chapter 7 Section 179 Expensing
      • Increased Limits for Targeted Areas
      • Business Taxable Income Limit
      • Pass-Through Entities
      • Qualifying Property
      • Making the Section 179 Election
      • Section 179 Recapture
    • Chapter 8 Vehicles and Listed Property
      • Special Rules for Listed Property
      • Business Use Requirement for Listed Property
      • Lessee’s Income Inclusion Amount—Listed Property Other Than Autos
      • Limits on Vehicle Depreciation
      • Special (Bonus) Depreciation and the Section 280F Limit
      • Section 179 Expensing Rules
      • Standard Mileage Rates vs. Actual Costs
      • Leased Vehicles
      • Alternative Motor Vehicle Credit
      • Credits for Plug-In Vehicles
    • Chapter 9 Real Property
      • What Is Real Property?
      • Farm Buildings
      • Business Use of Home
      • Converting a Residence to Rental Property
      • Effect of Rental or Business Use on Sale of Residence
      • Land Improvements
      • Energy Efficient Commercial Building Deduction
      • Nonbusiness Energy Property Credit
      • Leasehold Improvements
      • Finding Personal Property Included in a Building’s Cost (Cost Segregation)
      • Structural Component vs. Personal Property
      • IRS View of Cost Segregation Studies
    • Chapter 10 Sales and Dispositions
      • Disposing of Business Assets (Section 1231 Transactions)
      • Depreciation Recapture
      • Section 1245 Depreciation Recapture
      • Section 1250 Depreciation Recapture
      • Other Recapture Events
      • Sales of Depreciable Real Property
      • Installment Sales
      • Borrower’s Property Is Foreclosed or Repossessed
      • Foreclosing on Seller-Financed Real Estate
      • 3.8% Net Investment Income Tax (NIIT)
      • Qualified Opportunity Funds
    • Chapter 11 Exchanging Property
      • Like-Kind Exchanges
      • Held for Business or Investment Use
      • What Is Like-Kind Property?
      • Recognizing Gain on an Exchange
      • Basis and Holding Period of Property Received
      • Depreciating Property After a Like-Kind Exchange
      • Exchanging Property Subject to Debt
      • Deferred Exchanges
      • Qualified Intermediaries
      • Involuntary Conversions
      • Condemned Real Estate
    • Chapter 12 Correcting Depreciation Errors
      • Depreciation as an Accounting Method
      • Requesting an Accounting Method Change
      • Example—Change in Accounting Method
    • Chapter 13 Intangible Assets
      • Amortizable Intangibles
      • Depreciable Intangibles
      • Section 197 Intangibles
      • Amortizing Section 197 Assets
      • Disposing of Section 197 Assets
      • Intangible Drilling Costs
      • Business Start-Up Costs
      • Organizational Costs
      • Reforestation Costs
      • Research and Experimental Expenditures
      • Income Forecast Method
    • Chapter 14 Other Depreciation Methods and Depletion
      • Accelerated Cost Recovery System (ACRS)
      • Alternate ACRS (Modified Straight-Line) Method
      • ACRS Deductions in Short Tax Years
      • Other Depreciation Methods
      • Assets Placed in Service Before 1981
      • ACRS Tables
      • Introduction to Depletion
      • Depletion
      • Oil and Gas
      • Direct Working Interest Owner
      • Royalty Interest Owner
      • Other Key Tax Considerations
    • Chapter 15 ACRS in Depth
      • Accelerated Cost Recovery System (ACRS)
      • Property Depreciated Under ACRS
      • How to Calculate the ACRS Deduction
      • Classes of Recovery Property
      • Alternate ACRS Method
      • Conventions
      • ACRS Deduction in a Short Tax Year
      • Dispositions of Property
    • Chapter 16 Pre-1981 Rules—in General
      • Useful-Life Depreciation Methods
      • Multiple Asset Account Useful-Life Depreciation
    • Chapter 17 Pre-1981 Rules—Class Life Asset Depreciation Range (ADR) System
      • The ADR Election
      • Basis of a Vintage Account
      • Property Eligible for the ADR Election
      • Classification of Property Under the ADR System
      • ADR Depreciation Methods
      • First-Year Averaging Conventions
      • Depreciation Period
      • Salvage Value
      • Retirements of ADR Property
      • Tax Consequences of Ordinary Retirements of ADR Property
      • Tax Consequences of Extraordinary Retirements of ADR Property
      • Retirement of Last Asset in a Section 1245 Vintage Account
      • Optional Treatment of Salvage Value
    • Chapter 18 Selected IRS Materials
      • Rev. Proc. 87-56 (Class Lives and Recovery Periods)
      • Tables of Class Lives and Recovery Periods
    • Chapter 19 Selected Regulations
      • Code Section 162 Selected Regulations For Business Expenses
      • Code Section 167 Selected Regulations for Depreciation
      • Former Code Section 168 Selected Proposed Regulations for ACRS Property
      • Code Section 168 Selected Regulations for MACRS Property
      • Code Section 179 Selected Regulations for Expensing
      • Code Section 263 Selected Regulations for Capital Expenditures
      • Code Section 1502 Regulation for Additional First Year Depreciation for Consolidated Group Members

TABLE OF CONTENT

-->