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Frequently Asked Tax Questions

Sale or Trade of Business, Depreciation, Rentals - Depreciation & Recapture


Rev. date: 1/2010


Can the entire acquisition cost of a computer that I purchased for my business be deducted as a business expense or do I have to use depreciation?

previous topic occurrence Business Expenses next topic occurrence
previous topic occurrence Computer next topic occurrence
previous topic occurrence Depreciation next topic occurrence
previous topic occurrence Depreciation Deduction next topic occurrence
previous topic occurrence Depreciation and Amortization (Including Information on Listed Property) next topic occurrence
previous topic occurrence How to Depreciate Property next topic occurrence
previous topic occurrence Listed Property next topic occurrence
previous topic occurrence Rental Property next topic occurrence
previous topic occurrence Section 179 Deduction next topic occurrence

The acquisition cost of a computer purchased for business use:
NOTE:  Increased section 179 limits. The maximum section 179 deduction you can elect for qualified property (section 179 property) placed in service in 2009 is  $250,000 ($285,000, for qualified zone and qualified renewal property). This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $800,000. You may also see the IRS site for Code Section 179 for the expanded definition.

Rev. date: 1/2010


What kinds of property can be depreciated for tax purposes?

previous topic occurrence Business Expenses next topic occurrence
previous topic occurrence Computer next topic occurrence
previous topic occurrence Depreciation Deduction next topic occurrence
previous topic occurrence Depreciation and Amortization (Including Information on Listed Property) next topic occurrence
previous topic occurrence How to Depreciate Property next topic occurrence
previous topic occurrence Listed Property next topic occurrence

To be depreciable, the property must:
The kinds of property that can be depreciated include, but are not limited to, machinery, equipment, buildings, vehicles, and furniture. Some intangible property may also be depreciable (e.g. patents).

Rev. date: 1/2010


What form and line do I deduct the standard mileage rate for my business travel and do I need to figure depreciation of the vehicle, too?

previous topic occurrence Business Expenses next topic occurrence
previous topic occurrence Depreciation and Amortization (Including Information on Listed Property) next topic occurrence
previous topic occurrence Employee Business Expenses next topic occurrence
previous topic occurrence Listed Property next topic occurrence
previous topic occurrence Out-of-town Transportation next topic occurrence
previous topic occurrence Profit or Loss from Business (Sole Proprietorship) next topic occurrence
previous topic occurrence Standard Mileage Rate next topic occurrence
previous topic occurrence Standard Mileage Rate Not Allowed next topic occurrence
previous topic occurrence Travel, Entertainment, Gift, and Car Expenses next topic occurrence

The standard mileage rate:
Instead of the standard mileage rate, you can use the actual expense method. If you use this method, you need to figure depreciation for the vehicle.
The business use of a car or truck is claimed on:

Rev. date: 1/2010


I have a home office. Can I deduct expenses like mortgage, utilities, etc., but not deduct depreciation so that when I sell this house, the basis won't be affected?

previous topic occurrence Basis next topic occurrence
previous topic occurrence Business Expenses next topic occurrence
previous topic occurrence Cost Basis next topic occurrence
previous topic occurrence Depreciation Deduction next topic occurrence
previous topic occurrence Depreciation and Amortization (Including Information on Listed Property) next topic occurrence
previous topic occurrence Home Used for Business next topic occurrence
previous topic occurrence How to Depreciate Property next topic occurrence
previous topic occurrence Sales and Other Dispositions of Assets next topic occurrence
previous topic occurrence Selling Your Home next topic occurrence

If you qualify, for the part of your home that is a home office:
If you do not claim depreciation on that part of your home that is a home office, you are still required to reduce the basis of your home for the allowable depreciation of that part of your home that is a home office when reporting the sale of your home.

Rev. date: 1/2010


We have incurred substantial repairs to our rental property: new roof, gutters, windows, furnace, and outside paint. What are the IRS rules concerning depreciation?

Apartment Building
previous topic occurrence Business Expenses next topic occurrence
previous topic occurrence Depreciation Deduction next topic occurrence
previous topic occurrence Depreciation and Amortization (Including Information on Listed Property) next topic occurrence
previous topic occurrence Depreciation of Rental Property next topic occurrence
previous topic occurrence Rental next topic occurrence
previous topic occurrence Rental Property next topic occurrence
previous topic occurrence Repairs and Improvements next topic occurrence
previous topic occurrence Residential Rental Property (Including Rental of Vacation Homes) next topic occurrence
previous topic occurrence Supplemental Income and Loss next topic occurrence

Replacements of roof, rain gutters, windows, and furnace on a residential rental property:
Repairs, such as repainting the residential rental property:
NOTE:  Repainting your property, fixing gutters or floors, fixing leaks, plastering, and replacing broken windows are examples of repairs. If you make repairs as part of an extensive remodeling or restoration of your property, the whole job is an improvement. In that case, you should capitalize and depreciate the repair costs as the same class of property that you have restored or remodeled as discussed above.