Cost Recovery: Depreciation and Amortization

Free CPA REG (Taxation & Regulation) lesson in Federal Taxation of Property Transactions. 21 min read, ~3,102 words.

MACRS GDS recovery periods: 5 years (autos, computers), 7 years (machinery, furniture), 15 years (land improvements, QIP), 20 years (farm structures), 27.5 years (residential rental), 39 years (nonresidential real). Half-year is the default convention; mid-quarter triggers when more than 40% of personal property is placed in service in Q4 (real...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• III.B1

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