Discussion:Depreciation Life of Heavy Earth Moving Equipment
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Discussion Forum Index --> Tax Questions --> Depreciation Life of Heavy Earth Moving Equipment
| 26 March 2006 | |
| Anyone have clients in earth moving business? I have one that will typically buy a piece of heavy earth moving equipment (Excavators, Large tractors etc., D9's.) Is the depreciable life 5 years MACRS? These cost about $250,000 a pop.
Thanks | |
| 26 March 2006 | |
| Five-Year Property. Five-year property generally includes property with a class life of more than four years and less than 10 years. This property includes: (1) cars, (2) light and heavy general-purpose trucks | |
| 26 March 2006 | |
| are you finding that in a specific table? would this be considered a construction type of business? if so, it would be 5/6. the one I found last night was "heavy general purpose trucks", weight > 13,000 lbs., 5/6. I haven't found anything that talks about "heavy equipment". | |
| 26 March 2006 | |
| I was confused if it should be 5 or 7 years. The machines are definately over 13,000 pounds. The equipment is definately used in construction. My client actually rents out the equipment on a job to job basis to other contractors. She does not actually operate the equipment herself. | |
Chris2lane (talk|edits) said: | 26 March 2006 |
| JDA, I have a client in the earth moving business. He's been doing it for about 10 years and I have always used MACRS 5 years for his dumptrucks. | |
| 26 March 2006 | |
| I have numberous clients with dumptrucks, DC's whatever, Definitely 5 year MACRS proeprty- have always depreciated MACRS 5 years. Not 7 and not 10 . | |
| 26 March 2006 | |
| I would have sworn a 7 year life was correct. But that's why we have reference materials. Looks like 5 years is correct.
From RevProc 87-56: 15.0 CONSTRUCTION: Includes assets used in
construction by general building,
special trade, heavy and marine
construction contractors,
operative and investment builders,
real estate subdividers and
developers, and others except
railroads 6 5 6
I'm not sure the formatting will copy over correctly when this gets posted.. The numbers 6 5 6 refer to Class Life, General Depreciation System and Altenative Depreciation System, respectively. So 5 will be the correct MACRS life. | |
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