Asset Management White Papers

Selecting the Correct Depreciable Life: Two Recent Tax Law Changes

Overview Assigning the correct depreciable life/recovery period to your fixed assets for tax reporting purposes has long been a troublesome area of tax law. While for GAAP purposes you need to determine the most accurate depreciable life that best reflects your assets’ true economic usefulness, the tax rules are quite different because they assign mandatory recovery periods. For tax reporting, you should use the IRS ADR Class Life Table,* which assigns assets both a MACRS GDS and ADS recovery period. However, many taxpayers find that it is often difficult to locate a particular asset in the IRS table, and different interpretations are frequently made as to which category an asset belongs.

Further White Paper Details
PublisherBest Software File FormatHTML
Date PublishedAugust 2003 Downloads9
FormatWhite Papers   
Topics

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