'Procurement of new vehicles should be given emphasis since it is more prudent and economical on the part of the government as compared to repairs of
fully depreciated and completely outmoded vehicles,' the COA said.
Once the vehicle is
fully depreciated, the taxpayer can continue deducting all the costs, other than depreciation, associated with the business use of the vehicle.
Reiman's decision about purchasing the PythonX was met with a balance of real-world economics of a significant investment, especially since the 2002 traditional stand-alone beam line that it would replace hadn't yet
fully depreciated. Technological advances can sometimes outpace a depreciation schedule.
One line is 20 years old and
fully depreciated. The second line is new, and depreciation is charged at an accelerated rate to match the tax depreciation.
When property has been expensed or
fully depreciated, there is zero basis, so no casualty loss deduction can be claimed.
Grant said: "The reduction in revenues and EBITDA was mainly due to lower depreciation recoveries through the tolling agreement as a result of the assets established when the company was formed now being
fully depreciated."
After years, the whole purchase price has been subtracted and the property is considered
fully depreciated. Someday, when the place is sold at a profit, depreciation must be recaptured -- settled up with the IRS.
* There is a potential windfall for states when, for example, an asset is
fully depreciated under one tax policy/regime and the asset is sold under a different tax policy/regime, as it creates a mismatch between the benefit of depreciation deductions and the tax on the gain; and
At least 24 motor vehicles are 10 to 21 years old and are "
fully depreciated." Repairs have been made on the old vehicles at least 52 to 211 times, causing the PMS expenses ranging from P398,757.87 to P2,069,009.76 or 66.95 percent to 220.88 percent of the acquisition cost of the vehicles.
Section 13201 of this bill allows "plants bearing fruits and nuts" to be
fully depreciated in the year they are planted.
"An LLC's building, and other depreciable property, would be 'qualified property' for purposes of the new test, as long as the LLC had not
fully depreciated the property.