Once a taxpayer uses a method to determine the removed portion's unadjusted depreciable
basis, the same method must be consistently applied to all portions of that same asset.
To defer the recognition of gain in a vineyard and winery setting where a significant amount of depreciable
property exists, the amount of depreciable
property received in the [section]1031 exchange (the replacement property) must be equal to or exceed the amount of depreciable
property sold (the relinquished property).
If an asset is considered to be a land improvement not specifically included in another asset class and is otherwise depreciable
, it will typically be depreciable
over 15 years.
Since their position was that the depreciable
improvements were worth only $375,00, the depreciation remaining to be taken was $21,000.
Unfortunately, in determining the depreciable
value of the Booth subscribers, the Newhouse experts ignored the fundamental worth of paid circulation--that circulation, at bottom, is the vehicle used by newspapers to garner the advertising revenues from which all profit is derived.
It allows taxpayers to change from improperly having a depreciable
interest in property subject to a tenant construction allowance to not having a depreciable
interest in such property, or vice versa.
* Dispositions of tangible depreciable
assets in a general asset account;
[section] 1.1031(a)-2(b)(2) generally provides that property within a General Asset Class consists of depreciable
tangible personal property described in one of certain asset classes in Rev.
We support legislation to decrease the length of depreciable
lives for tenant improvements.
732(d) provides as an example of its application a situation in which land and depreciable
property are distributed in a liquidating distribution to a partner (C) who purchased a partnership interest from another partner.
174 treatment when the resulting product is subsequently sold to a customer, because the sale makes the product depreciable
property in the customer's hands.
ISSUE: The Economic Recovery Tax Act of 1981 created a depreciable
life of 15 years for all real property placed in service after December 31, 1980.