Chapter 12: Depreciation
In this Chapter 12 of free tax course, we discuss depreciation. In order to discuss
depreciation, we first define different types of properties including real properties.
Definition of property and Real property
Property is something that you legally posses or own.
"Real" property refers to land and improvements on the land such as
Personal property is something you own other than land.
Property can be tangible (touchable, concrete) or intangible (NOT touchable such
as "good will" or even a promise not to compete). Tangible personal property can range from
building-moving tractors to a palm sized cell phone. For tax purposes, only property used in business or income
producing activities is considered depreciate. This is also called a capital asset.
What is Depreciation?
Types of Property
What Can and Cannot be Depreciated
Modified Accelerated Cost
Recovery System (MACRS)
Property Classes and Recovery