Depreciable Basis Example
The following example illustrates how the system calculates an asset’s depreciable basis.
|
Acquired Value: |
$10,000 |
|
Business Use %: |
80% |
|
Section 179: |
$2,000 |
|
ITC Reduction: |
$0 |
|
Salvage Value: |
$1,500 |
The system calculates the depreciable basis as follows:
|
Acquired Value |
$10,000 |
|
|
X Business Use % |
80% |
|
|
|
8,000 |
|
|
Less Sect. 179 |
(2,000) |
|
|
Less ITC Reduction |
0 |
|
|
Less Salvage Value |
0 |
(not applicable for MACRS) |
|
|
6,000 |
|
|
Less Special Allowance |
(1,800) |
6,000 X 30% |
|
Depreciable Basis |
4,200 |
|