Discussion:Equipment Rental Depreciation
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Discussion Forum Index --> Tax Questions --> Equipment Rental Depreciation
| 11 September 2006 | |
| My client's company is in the business of renting construction equipment. Would the depreciation period for equipment rentals be 5 years? | |
Mtmckeecpa (talk|edits) said: | 11 September 2006 |
| P,
I use to be in the medical equipment rental business and I used 5 years for all of our rental equipment under class life 57.0. I don't do much in the way of construction but see class life 15.0, construction. May apply to you. Watch your AMT impact if you use class life 57.0 | |
RON CARMARK (talk|edits) said: | 12 September 2006 |
| FIVE YEARS FOR CONSTRUCTION EQUIPMENT WOULD BE CORRECT. | |
| 12 September 2006 | |
| I think the tax code needs to be updated. Most of this equipment that is being depreciated over 5 years won't last thru 5 years of use. Some of it doesn't last 1 year.
How about anything made in China gets accelerated depreciation over a month period? Computers last 5 years anymore? | |
Taxstudent (talk|edits) said: | 12 September 2006 |
| Strangely enough, unless there is an asset class for renting the equipment, the Hauptli rule dictates that you classify it according to the lessee's use. This part of MACRS leads to endless primary use problems for short-term rentals. The rent-to-own industry sought a statutory fix for themselves in the 1990s, but here the problem can be side-stepped by using hours-of-use to determine primary use and so it would fall into asset class 15.0 almost without exception. | |
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