on depreciation, i edited a

[Fkatz]

Re: Depreciation; Purchased used 2007 St Trk answer that was posted on 1/12/2009


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Cargo vans are 5 years, straight trucks and tractors are 3 years, trailers are 6 years
it also is a prorated in the first year depending on the month that it is put in service.

So if you put the vehicle inservice in April, you would get 3/4 of a year in the first year of the financed amount. plus a 179 deduction for the deposit.
and the balance would be depreciated over the next 3 years, meaning that less say,

April 2008 to Dec 2008 9 monts 2/3
Jan 2009 to Dec 2009 1 year full
jan 2010 to dec 2010 1 year full
jan 2011 to Mar 2011 3 months 1/3

This is your 3 years above

Franklin Katz, ATP,PA, CPB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934



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Last edited by Fkatz; Today at 01:10 PM.

 

[RETIDEPXE]

10-4, got it.

Thank you sir,
Dougb

 

[nightcreacher]

my accountant has always given me 5 years on my tractors,I've been audited twice,never had a problem. has the rules changed.Im thinking of doing my own taxes this year,Im tired of paying the accountant for basically just checking my figures and sending to IRS.Am I making a mistake?

 

[Fkatz]

Yes You are making a mistake, Depreication on a Straight truck or tractor is (3) years, not 5 and that is one reason you got audited or if they did not check that then they got you for something else, but normally the 3 years is correct. If you look in IRS Publication 946 around page 97 it states tractors 3 years There are some HD trucks that are 5 years, but if its a Class 7 or 8 its 3

Frank
Franklin Katz, ATP,PA, CPB
Frank’s Tax and Business Service
120 York Rd
Kings Mountain, NC 28086-3151
(704) 739-4039
Fax: (704) 739-3934



Circular 230 Ruling: Compliance

This email (including any attachments) contains PRIVILEGED AND CONFIDENTIAL INFORMATION protected by federal and/or state law and is intended only for the use of the individual(s) or entity(is) designated as recipient(s). The information contained within this email should not be construed as tax advice. If you are not an intended recipient of the email, you are hereby notified that any disclosure, copying, distribution, or action taken in reliance on the contents of this email is strictly prohibited. Disclosure to anyone other than the intended recipient does not constitute a waiver of any applicable privilege. If you have received this email in error, please immediately notify us by phone at (704) 739-4039 or by email at [email protected] and then permanently delete the original and any copy of this email (including any attachments) and destroy any printout thereof.