Business Connection

Depreciating Animals

The Internal Revenue Code uses the Modified Accelerated Cost Recovery System $($MACRS$)$ to compute depreciation for tax purposes. Under MACRS, various farm animals may be depreciated. The period $($years$)$ over which some common classes of farm animals may be depreciated are shown in the table that follows.

Depreciation for farm animals begins when the animal reaches the age of maturity, which is normally when it can be worked, milked, or bred. For racehorses, depreciation begins when a horse is put into training. 'What are some other non traditional company assets that would need to be depreciated?$\text{'}$