Discussion:US company with assets in foreign country

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Disneyman26 (talk|edits) said:

28 February 2012
I keep circling around on this and could use some help. I found answers for real property (40 years) but cannot seem to find an answer to the following:

If a US company has assets located in a foreign country (branch operation not subsidiary) what rate/method of depreciation should it use for machinery & equipment and furniture and fixtures?

I seem to remember hearing/reading at some point that the life should be 10 and the method is ADS.

Thank you for your help

-Brian

Lizzit (talk|edits) said:

28 February 2012
QBU. ADS wherever QBU isn't possible to harmonize with the tax regime in the other country. # of years for MACRS/ADS is in tax code. As it's a branch operation, it may still be required to file tax returns in that other country. You'd get your QBU info from the local accountants.

Disneyman26 (talk|edits) said:

28 February 2012
Thank you for your reply.

Disneyman26 (talk|edits) said:

28 February 2012
Thank you for your reply.

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