In general, property that you own can be depreciated if it meets all of the following requirements: |
The starting point to determine how much depreciation you can claim on a business asset is a value for the asset known as its "tax basis." |
What if, for a single purchase price, you purchase an asset that is only partly depreciable? Before you can determine the depreciable tax basis of the asset, ... |
If, like most taxpayers, you use the standard depreciation charts to compute your depreciation expense each year, your tax basis for the asset at the time ... |
If you trade in some business equipment that was used 100 percent for business, in exchange for new business equipment of the same asset category, the transaction will not be a taxable event because ... |
Normally, you can't take a current business deduction for the entire cost of a capital asset in the year you purchase it, because the asset's usefulness to your business will extend beyond the year ... |
The maximum amount of business equipment that can be expensed each year is subject to a ceiling amount of $105,000 in 2005 ($108,000 in 2006 and indexed ... |
As long as you start using your newly purchased business equipment before the end of the tax year, you get the entire expensing deduction for that year, ... |
The total cost of property that may be expensed for any tax year cannot exceed the total amount of your taxable income that you get from the active conduct ... |
Allocation rules determine how the benefits of the expensing deduction are to be split up between spouses, certain related corporations, partnerships and ... |
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