If the home is owned (not rented), the home office deduction includes an allowance for depreciation
732(c) upon a liquidation of the partner's interest immediately after the transfer of the interest would have resulted in a shift of basis from property not subject to an allowance for depreciation
, depletion, or amortization, to property subject to such an allowance; and
adopted in 1957, expenditures for the acquisition or improvement of property that is subject to an allowance for depreciation
or depletion are not deductible under Sec.
With prime property, you pay for security, with little allowance for depreciation
as the building ages and the lease shortens.
Under the actual expense method, you can deduct the cost of gasoline, oil, maintenance and repairs, insurance, vehicle registration fees, and either an allowance for depreciation
of a car that is owned or payments for a car that is leased.
However, the allowance for depreciation
is set by the taxing jurisdiction and may or may not follow the depreciation schedule you use for book purposes.
167(c), salvage value -- the estimated amount realized on disposition of an asset -- is taken into account in determining the taxpayer's allowance for depreciation
Moreover, the taxpayer is not permitted to deduct an allowance for depreciation
It would appear that recent case law is favorable to the proposition that all artwork, "valued and treasured" or not, is subject to the allowance for depreciation
The domain name would be a capital asset under IRC section 1221, unless it is property used in a trade or business of a character subject to allowance for depreciation
under IRC section 167.
94-38 further states that "since the land is not subject to an allowance for depreciation
, amortization, or depletion, the amounts expended to restore the land to its original condition are not subject to capitalization under section 263(a)(2).