MACRS Depreciation: Asset Classes, Recovery Periods, and Depreciation Methods

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Finance - Personal Finance

georgepetenjk Created by 10 mon ago

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Special tools and certain racehorses fall under the _____ MACRS class.

Automobiles, light trucks, computers, and copiers are categorized under the _____ MACRS class.

Furniture and fixtures, machinery, and equipment are included in the _____ MACRS class.

Boats and water transportation equipment are classified under the _____ MACRS class.

Qualified improvements to the interior of existing nonresidential buildings and certain land improvements fall under the _____ MACRS class.

Certain farm buildings and municipal sewers are included in the _____ MACRS class.

Nonresidential real property is categorized under the _____ MACRS class.

Residential real property is classified under the _____ MACRS class.

The 200% declining balance method applies to the _____ MACRS classes.

The 150% declining balance method is used for the _____ MACRS classes.

The half-year convention applies to personal property and assumes property is placed in service at the _____ of the tax year.

If more than 40% of personalty is acquired in the fourth quarter, the _____ convention applies to all personal property.

Land is not depreciable under MACRS and should be _____ from the cost when calculating depreciation.

Costs of issuing and selling stocks, commissions, underwriters fees, and costs incurred to transfer assets to a corporation are _____ organizational or start-up costs.

The maximum deduction for student loan interest expense is _____ per year.

Excess book expense over tax deduction must be _____ to get to taxable income.

Excess tax deduction over book expense should be _____ to get to taxable income.

Income on book not on tax must be _____ to get to taxable income.

The order of cost recovery is _____, bonus, MACRS.

Any MACRS class that is under _____ years is eligible for 179 and bonus depreciation.

The lifetime learning credit for post-graduate education has a maximum of _____ per year.

The American Opportunity Tax Credit for undergraduate education is _____ per year.

The ending basis in an S Corp is calculated by initial contributions plus additional contributions, share of income items, minus distributions to shareholders, nondeductible expenses, and loss items. This is known as the _____ in S Corp.

The partnership tax basis is calculated by contributions, additional contributions, share of income items, minus loss items and distributions. This is known as the _____ basis.

Fees for legal services in drafting corporate charter and bylaws, fees for accounting services, and state incorporation fees are considered _____ costs.

Training costs, advertising costs, and costs incurred prior to opening a business are categorized as _____ costs.

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MACRS Depreciation: Asset Classes, Recovery Periods, and Depreciation Methods

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