50% Bonus depreciation and time-share%

[zorrambo]

Last year I used the 50% Bonus depreciation rule on a mattress but now my TS% has changed. To complicate things further, I also used the half-year convention. To provide some numbers:

$1567 for a mattress
TS% for 2013 was 8%
TS% for 2014 was 7%

2013 Business basis was $125. With 50% rule, I was left with $62.50. With HY Convention, my table % was 14.29%. $62.50 (14.25%)= $8.93. $62.50 + $8.93= $71.43 (my 2013 depreciation deduction).

My Table % for 2014 is 24.49%. Now, what do I do with that new TS%?

Thank you

[TomCopeland]

depreciation

Last year I used the 50% Bonus depreciation rule on a mattress but now my TS% has changed. To complicate things further, I also used the half-year convention. To provide some numbers:

$1567 for a mattress
TS% for 2013 was 8%
TS% for 2014 was 7%

2013 Business basis was $125. With 50% rule, I was left with $62.50. With HY Convention, my table % was 14.29%. $62.50 (14.25%)= $8.93. $62.50 + $8.93= $71.43 (my 2013 depreciation deduction).

My Table % for 2014 is 24.49%. Now, what do I do with that new TS%?

Thank you

Multiply the $1567 by your new time-space % of 7% = $110. Take half of this amount (the business portion you are depreciating), or $55 x 24.49% = $13.47.

Your time-space % of 7 or 8% is extremely low. If you want, call me at 651-280-5991 and I can talk to you to see if this is correct.

[zorrambo]

Thank you. My TS% is correct. I went over it with you last year.