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MACRS depreciation

Discussion in 'Business Operations' started by TomberLawn, Dec 23, 2008.

  1. TomberLawn

    TomberLawn LawnSite Bronze Member
    Posts: 1,299

    Does anybody use MACRS? If so, which depreciation schedule do you use? I found a list of different types of assets that had different lengths of time they could be depreciated. Where do mowers fall? I talked to an accountant briefly the other day and I'm going to meet with him in January, but I'd like to go ahead and get some of this figured out.
  2. iceman563

    iceman563 LawnSite Member
    Posts: 4

    section 179- you can write off all equipment until income is 0

    depreciation MACRS- i would use 5 yr for mowers& trailers 3yr for all other equip
  3. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,603

    For property, other than real estate, MACRS must be used. You can use the straight line method instead of the accelerated method under MACRS. Under either method, one half year depreciation is taken in the year of acquisition and the year of disposition, regardless of the month acquired. Therefore, under the MACRS straight line method on 5 year property you take 10% in year 1 (1/2 year) and 10% in year 6 (1/2 year) and 20% in years 2, 3, 4,and 5. Additionally, the cost of the property is not reduced by the salvage value. As Iceman stated, you probably want to write the whole purchase off under section 179.
  4. Stuttering Stan

    Stuttering Stan LawnSite Bronze Member
    Posts: 1,503

    I do all equipment, including mowers, for 5 years.

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