Tax Law (Questions About Taxes)/depreciation

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Question
I rent out movie props (old phones, radios, etc.) to film makers.
How would I depreciate them. Can I list them as a whole lot or do I have to individually depreciate each item. Thank you for any help you can give me.

Answer
Sennie,

Thanks for your question.

It would be more simple if you depreciated then individually. That way, if an asset was retired, lost, or whatever before the end of its depreciable life, you would have much less effort trying to determine the book value of the retired asset.  You should use (for tax purposes) MACRS depreciation, utilizing the proper class life for each asset.

This link is to the IRS publication on Depreciation, covering cost basis, class life (page 32), special depreciation allowances, and other relevant issues related to depreciation.  http://www.irs.gov/pub/irs-pdf/p946.pdf  I think you will find it useful, if you have any questions about it, send me another question.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA

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I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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