Discussion:Depreciation of Concrete facilities
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Discussion Forum Index --> Advanced Tax Questions --> Depreciation of Concrete facilities
Discussion Forum Index --> Tax Questions --> Depreciation of Concrete facilities
| 19 March 2008 | |
| I have a client that mixes and sells concrete. This is their first year in business, they purchased the mixing facility (silo, mixers, conveyer belts) as one inclusive item. I'm unsure of what property class this should fall under, I'm leaning to the 10 year property class for various machinery & equipment, I would just like a second opinion since I can't seem to find anything specific to that industry. Any help would be much appreciated. Thanks, | |
TheTinCook (talk|edits) said: | 19 March 2008 |
| Asset Class 32.3 and depending on what else they do Asset Classes 32.2 and 10.0 | |
TheTinCook (talk|edits) said: | 19 March 2008 |
| Also, portions of it could be Asset Class 57.0 | |
| 19 March 2008 | |
| Think I'm going with 32.2, seems to be the best fit. Thank you very much! | |
TheTinCook (talk|edits) said: | 20 March 2008 |
| Cement production (Asset Class 32.2) is a very different from concrete production.
Cement is an ingredient of concrete. It's produced by heating limestone in a kiln and grinding it with other materials. I mention it, because some concrete operations make their own cement. Since you mention a mixing facility, that would fall under Asset Class 32.3, which includes the production of concrete. Concrete is made by mixing cement, aggregates, additives, and water (unless they are making dry mix). | |
| 20 March 2008 | |
| This question is a very hard one. Hope you don't get stuck! | |
TheTinCook (talk|edits) said: | 20 March 2008 |
| Hey! Don't steal TaoCPA's bit. | |
| 6 April 2008 | |
| Be Certain to Read Reg 263(a) and 263(A-9) full of exampls. Resist the tempetation to "informally cost segregate" - this may not be done with out a Change in Accounting Method form 3115 - and the requisite Study. | |
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