Flashcards in DEPRECIATION Deck (26):
SECTION 1231 PROPERTY IS ____________
SECTION 1245 PROPERTY IS ____________
SECTION 1250 PROPERTY IS ____________
SECTION 1231 DEPRECIABLE TRADE OR BUSINESS PROPERTY
SECTION 1250 DEPRECIABLE REALITY
SECTION 1245 EQUIPMENT
1231 - BUSINESS PROPERTY
1245 - BUSINESS PROPERTY MACHINERY AND EQUIPMENT
1250 - REAL ESTATE
1231 Real or bus property held more than 1 year (not inventory); Gain is long term capital but loss is an ordinary loss
1245 Machinery and Equipment;Depreciation recapture is ordinary gain, but remainer is 1231 (see above, LT capital gain) Depreciation Mid-quarter or 1/2 Year
1250 real estate in business; Depreciation in excess of straight line is recaptured. Depreciation 27.5 year residential or 39 year non-residential - mid month convention.
WHAT IS THE DEPRECIATION PERIOD FOR RESIDENTIAL REAL ESTATE
COVENANT NOT TO COMPETE IS _______________ INCOME
SALE OF ACCOUNTS RECEIVABLE RESULTS IN ____________ INCOME
ORDINARY NOT CAPITAL GAIN
INTANGIBLES ARE AMORITIZED OVER A __________ YEAR PERIOD
WHAT IS LISTED PROPERTY?
PROPERTY THAT IS USED LESS THAN 50% IN A BUSINESS (SHARED BETWEEN HOME AND BUSINESS E.G. CARS AND COMPUTERS)
NON RESIDENTIAL REAL ESTATE IS/ISNOT DEPRECIATED USING MACRS
NO MACRS FOR NON-RESIDENTIAL REAL ESTAE
MID QUARTER CONVENTION IS USED IF
MORE THAN _____ %
OF DEPRECIABLE ASSETS EXCEPT REAL PROPERTY ARE PLACED IN SERVICE DURING ____ QUARTER
and then use mid quarter of the quarter it was pruchased.
40% ARE PLACED IN SERVICE DURING LAST QUARTER
OFFICE FURNITURE IS ___ YEAR PROPERTY
7 YEAR PROPERTY
COMPUTERS ARE WHAT YEAR PROPERTY ____
COMPUTER ARE 5 YEAR PROPERTY
MOST MACHINERY IS WHAT YEAR PROPERTY
MOST MACHINERY IS 7 YEAR PROPERTY
SPECIAL TOOLS ARE WHAT YEAR PROPERTY
SPECIAL TOOLS ARE 3 YEAR PROPERTY
AUTOMOBILES ARE WHAT YEAR PROPERTY
CCT ARE WHAT YEAR PROPERTIES
COMPUTER CARS AND TRUCKS ARE 5 YEAR PROPERTY
who may not claim section 179
trusts and estates
is listed property eligible for 179 and what is listed property
no listed property (depreciable property that is used less than 50% in trade or business)
when is the ADS used?
is MACRS mandatory?
the ADS can be used for listed property, listed property is business property that used less than 50% in a trade or business.
MCRS is required unless ADS is elected.
NonResdiential property is 39 years. It just looks like there's 40 years on the ADS table because you have the part in the first year and part in the last year.
what does no bonus depreciation or section 179 indicate about the property
that it's listed property , less than 50%
listed property calculating depreciation for business is a function of
$ x % x %
Less than 50% for business
Cost of Property x % in table for that year and class of property x % of business use
more than 50% use of property = ___________
can use MACRS
OFFICE MACHINERY _______ YEARS MACRS
ALL OTHER MACHINERY _________
5 YEARS OFFICE MACHINERY/EQUIPMENT COPIERS FOR EXAMPLE
7 YEARS MACHINERY BUSINESS
I'M A COPIER WHAT AM I ON MACRS
5 YEAR PORPERTY
I'M A CAR WHAT AM I ON MACRS
5 YEAR PROPERTY
I'M A COMPUTER WHAT AM I ON MACRS
5 YEAR PROPERTY