2012 Deprecation Rule...Question for Tom
2012 Deprecation Question-
With the 50% bonus rule in affect for 2012, The Half Year Convention Method would not play a part in calculating the amount to be deprecation in 2012 correct? Example: Taken from your book… Couch $1000 x 40% (T/S) =$400.00 x 50% (bonus rule) = $200.00 (to be deducted all at once). Then the remaining $200.00 x 14.29% (using 200% declining bal) =$28.58, or would I still have to apply the Half Year Convention Method to the $28.58…($28.50 x 50%) = 14.29 (amount to be depreciated for 2012) for a total of $214.29? I think I'm starting to understand the whole deprecation thing. Thanks Tom, and the webinar was great...answered a lot of my questions. Thanks! |
Half year convention
The depreciation percentage in the example already takes into account the half year convention. So, the additional deduction is $28.58.
It's rare that someone brings up the half year convention when talking about depreciation! |
One more question Tom
Good Morning,
I called you yesterday and forgot to ask this. I'm switching to the actual vehicle expenses method for 2012 "claimed standard in the first year 2011" Question- Do I need to re-capture any previous deprecation given under the standard mileage rate? Or will deprecation just start new for the "actual vehicle expense method? Thanks Tom! |
Car expenses
Originally Posted by frugalmama4: |
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