7YR/200% Question

[EAP]

I thought I read in Tom's book and now can't find if it said an item has to be new when purchased to use the 200% declining? So if I bought a used piece of furniture would I use the 7/SL instead of the 7/200%.

Also if I have all my items entered into MMK with the proper depreciation and convention selected does it already apply any applicable 50% bonus depreciation rules or will I need to do that?

Thanks for clarification.

[TomCopeland]

Depreciation

You can use the accelerated depreciation (200% declining balance method) for items that are used. You can't use the 50% bonus depreciation rule unless the item was purchased new.

The Minute Menu software does not calculate your depreciation deduction. So, it won't apply the 200% rule or the 50% bonus depreciation rule. The depreciation rules are too complex to be included as part of the record keeping software. So, when you enter your items to be depreciated, Minute Menu simply records what you have entered, and you can print this out in a report. You or your tax preparer must then apply the proper rules to depreciate each item.

[EAP]

You can use the accelerated depreciation (200% declining balance method) for items that are used. You can't use the 50% bonus depreciation rule unless the item was purchased new.

The Minute Menu software does not calculate your depreciation deduction. So, it won't apply the 200% rule or the 50% bonus depreciation rule. The depreciation rules are too complex to be included as part of the record keeping software. So, when you enter your items to be depreciated, Minute Menu simply records what you have entered, and you can print this out in a report. You or your tax preparer must then apply the proper rules to depreciate each item.

OOps - just figured that MMk is just showing the T/S on the items - missed that - thanks for clarifying!