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Tax Law (Questions About Taxes)/Declining Balance Method depreciation



I would have thought that when using the Declining Balance Method of depreciation with 0 salvage value there would be 0 balance at the end of the useful life, yet there is (and it's even more than the previous years depreciation expense).  What should I do with the remaining balance??


ANSWER: Figure out what yiu did wrong and why as well as planning on fixing it as it is likely that each year yiu have done your own taxes this way with this particular asset it is wrong.
If material, yiu should amend, if not just take it all in the last year but realize yiu are making an error and hope yiu don't get auditrd.
Correct answer is to fix it and amend

Good luck

---------- FOLLOW-UP ----------

QUESTION: These are new assets, I haven't begun depreciating them yet.  I am looking at the calculations.  For example, enter a 0 salvage value in
As you will see, there is a large "Book Value Year End" in the last column/ last row.  Shouldn't any method fully depreciate the asset by the end of it's useful life??  If not, do I fully depreciate the asset in the last year, ignoring the last Depreciation Expense?

There are simple tables in the irs publication which show % each year.  Mars depreciation will total 100% over the life. Not familiar with your link. But irs tables total 100% for each class/category.

Also Google "irs tax 179"  allows full write off in year placed in service.  New law just expanded that incentive write off to 2m threahold.

Buy equipment aND write it all off in year one.

How big is yiur company?   Do you want. A proposal to prepare your taxes?

Good luck


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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


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