Investor Glossary-depreciable propertyInvestor Glossary-depreciable propertyInvestor Glossary-depreciable propertyInvestor Glossary-depreciable propertyInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Depreciable Property

The HTML to link to this page
 

Depreciable property is any property other than land a property owner may depreciate for tax purposes. Tangible property such as buildings, equipment furniture, machinery, and vehicles is depreciable property, and some forms of intangible property such as copyrights, computer software, and patents are depreciable property. Depreciation enables the property owner to recover the cost of their depreciable property and claim an allowance for its deterioration, wear and tear, and/or obsolescence. When an owner fully recovers the cost of their property or retires it, the property is no longer depreciable property. Property must meet specific requirements to qualify as depreciable property. First, a taxpayer has to own the property. Second, a taxpayer has to use the property to produce income, as in a business. Third, the useful life of the property must exceed one year. Buildings, equipment and machinery, furniture, vehicles and other such tangible property are considered depreciable property. Under some circumstances, property that meets the preceding criteria still may not qualify as depreciable property. For instance, an owner who puts property into service and disposes of it within the same year can not claim it as depreciable property. Nor may owners claim equipment as depreciable property if they used it to construct capital improvements. For most depreciable property, the Modified Accelerated Cost Recovery System (MACRS) is used for depreciation. In some cases, however, a taxpayer may be allowed to make a Section 179 deduction instead of depreciating a property. Under Section 179, up to 100% of the cost of a qualifying depreciable property can be deducted, at the taxpayer's discretion, in the tax year during which it was placed in service. Depreciation of depreciable property is reported on Form 4562.



Rate this Depreciable Property definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: inflation, EBITDA, average price per share, current ratio, FTSE, 1035 exchange, LIBOR, annual return, deferred revenue, option premium, 401a, command economy, open position, real GDP, implied volatility, in escrow, quality assurance, cancelled check, dividends payable, covered put, stock split, 1031 exchange, class C shares, required rate of return, ex-dividend, limit order, risk management, Zero Cost Collar, reverse mortgage, minority interest, VIX, deferred tax, Key Rate Duration, margin rate, wholly-owned subsidiary, APR, 144a, diluted share, stock market close, FICO score, ex-dividend date, phantom income, per diem, debt service coverage, balance sheet, retained earnings, irrevocable trust, labor relations, liquidity ratio


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use