Accelerated Depreciation Spreadsheet / Checklist

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Does anyone have a good checklist of items that can be included in the accelerated depreciation method? I.e. fans, furniture, etc, etc,. 

What are the depreciation rates for each?

What are the amounts for each that you can use (especially for items such as an oven or the like that came with the house when purchased?)

Are there lower limits for the depreciated items, i.e. there are scrap values to an oven, so $500 to start and can depreciate it down to only $100 and not $0 over the period of time).

As i understand this an engineer or CPA would need to fill this but I wanted to get a jump start on understand what can be done here. 

Thanks in advance

@Dave Saveri to preface, accelerated depreciation separates into three categories according to the Internal Revenue Code:

  1. "Personal, or tangible property" depreciates over 5 years
  2. "Land improvements" depreciates over 15 years
  3. Building, or structural components (everything else) depreciates over 27.5 or 39 years (which may change with the new tax reform to 25 years)

That being said, some examples of 5-year property are: furniture, fixtures & equipment, carpet, decorative light fixtures, electrical costs that serve telephones and data outlets, shelves, decorative molding, etc.

Some examples of 15-year property are: parking lots, fences, signage, etc.

It is important to note, that the IRS highly recommends these property allocations (cost segregation) to be sourced according to the MACRAS Modified Accelerated Cost Recovery System, and the IRS Cost Segregation Audit Techniques Guide, and not estimated. Fail to do so puts one at high risk of failing a potential audit.

If you are doing renovations, or disposing of items within the property, it's worthwhile to have a cost segregation expert, accelerate the depreciation of the old, then can put a scrap value to those item, to write-off, and the new assets can be accelerated again. There are no general values, rather subject to appraised scrap value.

@Dave Saveri

You should also look at luxury items i.e.  trucks etc, software development and infrastructure that may have accelerated depreciation. Talk to cpa with your list of expenses for the year in hand. Cpa will provide you strategies and options. Especially with new law coming out. 

Originally posted by @Patrick Liska :

https://www.fanniemae.com/content/guide_form/4099f...

Just found this, thanks for the post, made me research a topic i wanted to find myself.

This PDF is not relevant to accelerating depreciation. The useful lives list provided by fanniemae is used to determine appraised value of assets for mortgage purposes. 

The IRS has an entirely different system for determining depreciation 'life' of assets, which by the way, is completely and totally arbitrary. ALL assets fall under 5, 7, 15, 27.5/39-year 'depreciable life'. This is arbitrary to the reality of the useful life. 

For example, if I have a chain-linked fence on a property, that I installed today, according to fanniemae it has a useful life of 40 years, which means that the full value of the fence can be added to the appraised value of the property to get a mortgage based on that value. In ten years the value of that fence will be appraised at 25% less.

However, according to the IRS that same fence 'depreciates' over 15 years, and if I utilize cost segregation, I can allocate  the value of that fence to claim a deduction over 15 years. If, in forty years, someone else buys that property with the fence on it, he gets to start over the 15 year depreciation cycle from the day that he buys it.

Depreciation basis starts over when a property is sold, regardless of how much 'useful life' the assets actually have.

Originally posted by @Patrick Liska :

@Yonah Weiss thanks for the feed back on that. that was the closest " list" i could find that breaks everything down, which i believe is what @Dave Saveri might be looking for, but with the correct breakdown of accelerated depreciation for everything.

Again, the list that you found has NOTHING TO DO with accelerated depreciation. Please read my previous comment again. Thanks.