In article <0941b228-445a-436f-993e-40a806d10fa5[at]b38g2000prf.googlegroups.com> ,
removeps-groups[at]yahoo.com <removeps-groups[at]yahoo.com> wrote:
- quote -


There are situations where your business use drops below 50%
or where you dispose of the property and would have to
recapture the difference between the accelerated expense
taken, and S-L. And there are situations where, like ideal
good businesses, your income rises each year. That means you
could benefit from not front loading your depreciation expense.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
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On Oct 13, 9:01 pm, kam...[at]panix.com (Arthur Kamlet) wrote:

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Why would straight line help?

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It might make state taxes earlier too, as I'm not sure if accelerated
depreciation is allowed in California.

--
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"nish" <nisha[at]nunya.org> wrote
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3 years? No. Section 179, yes.




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Shhhhhhh........

Don't tell the 8+ year old computer in the back room that we use every once
in a while to prepare a return for 1999 or so.

In fact, don't tell my 4 year old computer that I use on a daily basis
either.




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It'd be even more desireable to expense them like you do the water bill, but
Congress doesn't see it our way.





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Who do you sell your obsolete computer to?

If you do sell it, then it does have value, which supports the theory of
depreciation over it's useful life.

If you can, take Section 179 on that equipment, if not, then play by the
rules set out by Congress.





--
Paul A. Thomas, CPA
Watkinsville, Georgia

--
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In article <05ydneIuxZsUZG7VnZ2dnUVZ_hudnZ2d[at]giganews.com> ,
nish <nisha[at]nunya.org> wrote:
- quote -


Computers are not only 5-year CL, which as you know means six
tax & calendar years, they are also Listed Property.


Listed Property is the IRS's cutesy way of having you say, "Look
Look Look, we just bought computers." Or cars, and, I think
cell phones.


You do have both 50% Bonus Depreciation as automatically applicable
unless you take action to elect out of that Sec 168k benefit for
all property of that class, and Section 179 first year expensing
for all property that qualifies for these extras. That means,
among other things, that business use remains above 50% for the
entire five years.

And for property that you anticipate wearing out before the end of
its class life, consider using straight line, so you don't get
bitten later on.


- quote -


Please do not confuse statutory class life with the actual useful
life of that property.


Will you just toss out the computers? If so, there should be
no trouble with your expenses if you did not take bonus depreciation
or first year expensing, and you used straight-line instead of 200DB.


By the way if you are anywhere close to AMT, you might want to select
S-L for both regular and AMT, which somewhat simplifies your paperwork.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Is there any option to depreciate computers on a MACRS 200DB 3 Year method
instead of the 5 Year?

Computers typically become obsolete within two years of purchase. It would
be very desirable to just let them depreciate out after three years and not
have to hassle with doing asset sales in the middle of that five year
period.

nish

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >