Depreciation

[Redridertu]

What is the name of your state? UT
Can you please tell me if a Trailer pulled behind a road tractor is a 5 year property. Also, if you take a 179 on this property for 34,000.00 and only keep it 2 years and trade for another that is 57800.00, how do you treat the recapture on the 179 for the first trailer. Your help is appreciated.

 

[Snipes5]

Yes, a trailer is 5 year property. If there is recapture, it is ordinary income. Property that is purchased through a trade takes the remaining basis of the original property, plus any additional funds spent.

If you know you will dispose of property before its depreciation period (useful life) is over, don't use Sec 179 for it.

Please also save yourself a headache and have your taxes done by a professional. That's a lot of depreciation to be messing around with on a taxpayer prepared return. It could well scream "audit" to the IRS computers.

Snipes