Immediate expensing of new depreciable asset
purchases would be allowed for at least five years under the framework, but the corporate interest expense deduction would be limited (no details are provided as to how).
Removal costs are deductible if a taxpayer disposes of a depreciable asset
and takes the adjusted basis of the asset or asset component into consideration for purposes of calculating gain or loss.
Federal tax law provides that the basis of a depreciable asset
is deducted over the applicable recovery perod assigned to that asset.
If your company has a depreciable asset
and you're thinking about selling, that will be subject to recaptured depreciation, consider holding off on the sale until after your 2013 corporate year-end, as long as it makes sense for your business.
So instead of leasing, the seller sells the depreciable asset
and thereby triggers the recapture, but the price is adjusted via negotiations.
On a similar note, a deductible loss may be claimed for the abandonment of any depreciable asset
. The amount of that loss is the computer's adjusted basis.
The capitalized amount can be treated as a separate depreciable asset
in the same, corresponding MACRS class.
The basis of a depreciable asset
is reduced by the amount of the residual value to arrive at the depreciable amount.
Whether a subscription list is a depreciable asset
may seem an arcane subject to those who labor in the news, advertising and production departments, but this is an issue that goes to the heart of newspaper economics.
In general, this structure is not favorable to landlords because it creates taxable income without any cash and a depreciable asset
with a 31.5-year life.
Editor's note: The following is a supplement to the author's "Depreciable Asset
Lives: The Forgotten Estimate in GAAP, "published in the September 2016 CPA Journal.