Bookkeeping

Is there a good location to find out the IRS useful life for each asset?

Typically I have bookkeeping clients that have a tax professional and that person just lets me know what the determined useful life of that asset is, but occasionally, they don’t already have a tax professional and I need to make sure we are accounting for the depreciation accumulation properly. How would I go and find out that useful life properly?

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  1. 74 Answers

    HI the IRS has specific guidelines on depreciation that can be found here: https://www.irs.gov/taxtopics/tc704

    However the publication is a bit lengthy, here is an article that is a little more direct with the property class and useful life: https://money.howstuffworks.com/personal-finance/personal-income-taxes/how-to-use-irs-depreciation-tables.htm

    I would also look into an excel template where you can enter the asset, the date of purchase, and the useful life. The template will give you the exact amount you should book each month for deprecation.

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