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Michael Hannigan
Michael Hannigan, Internet Researcher
Category: General
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Experience:  Extensive experience in research and problem solving.
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Im trying to figure out the price depreciation schedule (month

Resolved Question:

I'm trying to figure out the price depreciation schedule (month by month) over two years, for products in the following categories:
o Furniture (e.g. Couch)
o Home electronics (e.g. Flat Screen)
o Home Appliances (e.g. Blender)
Submitted: 1 year ago.
Category: General
Expert:  Michael Hannigan replied 1 year ago.

XXXXX XXXXXnigan :

Hello. I can assist you with your question.

XXXXX XXXXXnigan :

There isn't a 2 year recovery period defined. The shortest period is 3 years for certain items. All schedules are outlined in the IRS Publication 946.


 

XXXXX XXXXXnigan :

If you go to page 16 of the document, however, you will see that there are some exceptions where the property can be taken as a deduction for the year it was placed into service under section 179

XXXXX XXXXXnigan :

Please let me know if you have any questions.


 

Expert:  Michael Hannigan replied 1 year ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

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If you haven’t already done so, please rate your answer above. Or, you can reply to me using the box below.
Customer: replied 1 year ago.

Hi Michael,


 


I'm actually looking for something that gives me a sense for how these values change month-over-month, as per my question. E.g. when I buy a couch, how much can I sell it for after 1 month (and then up to at least a year). I've seen the IRS depreciation schedules before, but they don't provide enough detail.


 


The answer doesn't have to be perfect, but it has to be within a shorter time frame. Do you know how to answer this question?

Expert:  Michael Hannigan replied 1 year ago.
Yes, I understand what you are asking.

This would be how an insurance adjuster would calculate the value of an item. There are various resources for this. One of them is the calculator on this page:

Depreciation Calculator

There is also a PDF guide on that page.

From a yearly depreciation scedule, it would be possible to break down months, although it's not often calculated that way.

Mike
Customer: replied 1 year ago.

Hi Michael,


 


Thanks this is a lot more helpful. My only issue is the month by month isn't really an accurate estimate of what happens to a couch's value from 0 to Month 1. Do you have any creative suggestions for estimating how an ACTUAL crate and barrel couch for example, changes in value month-by-month for the first year.


 


I'm definitely going to rate your response highly and submit payment because the answer above technically answers my question, but was hoping you would have some input as to how to get to a more realistic estimate.


 


Thanks!


Krista

Expert:  replied 1 year ago.

There are a couple of ways you can do this. The method you use is fairly subjective. One way is to take what you think is a fair yearly depreciation amount, multiply it by a factor (usually 1.5-2), divide that by 12, and then apply that percentage to the remaining value of the item (value of the item equalling original value - total depreciation).

So, let's say you decide that the value of a couch will decline about 10% per year based on the calculator. 10%*2 is 20%. 20%/12 is 1.67%. So this is how that would work out.

Original Value $2000

1 month $1966.60 (2000-33.40 (1.67% of 2000))

2 months $1933.76 (1966.60-32.84 (1.67% of 1966.60)

3 months $1901.47

4 months $1869.72

And so on...

This gives you a more accurate value for the item at any given time. Throw it into a spreadsheet and it looks like this.

 

Attached Spreadsheet

 

MonthDepreciation %Depreciation AmtValue
00.00%$0.00$2,000.00
11.67%$33.40$1,966.60
21.67%$32.84$1,933.76
31.67%$32.29$1,901.46
41.67%$31.75$1,869.71
51.67%$31.22$1,838.49
61.67%$30.70$1,807.78
71.67%$30.19$1,777.59
81.67%$29.69$1,747.91
91.67%$29.19$1,718.72
101.67%$28.70$1,690.01
111.67%$28.22$1,661.79
121.67%$27.75$1,634.04
131.67%$27.29$1,606.75
141.67%$26.83$1,579.92
151.67%$26.38$1,553.53
161.67%$25.94$1,527.59
171.67%$25.51$1,502.08
181.67%$25.08$1,476.99
191.67%$24.67$1,452.33
201.67%$24.25$1,428.07
211.67%$23.85$1,404.23
221.67%$23.45$1,380.77
231.67%$23.06$1,357.72
241.67%$22.67$1,335.04
251.67%$22.30$1,312.75
261.67%$21.92$1,290.82
271.67%$21.56$1,269.27
281.67%$21.20$1,248.07
291.67%$20.84$1,227.23
301.67%$20.49$1,206.73
311.67%$20.15$1,186.58
321.67%$19.82$1,166.76
331.67%$19.48$1,147.28
341.67%$19.16$1,128.12
351.67%$18.84$1,109.28
361.67%$18.52$1,090.76
371.67%$18.22$1,072.54
381.67%$17.91$1,054.63
391.67%$17.61$1,037.02
401.67%$17.32$1,019.70
411.67%$17.03$1,002.67
421.67%$16.74$985.92
431.67%$16.46$969.46
441.67%$16.19$953.27
451.67%$15.92$937.35
461.67%$15.65$921.70
471.67%$15.39$906.30
481.67%$15.14$891.17
491.67%$14.88$876.29
501.67%$14.63$861.65
511.67%$14.39$847.26
521.67%$14.15$833.11
531.67%$13.91$819.20
541.67%$13.68$805.52
551.67%$13.45$792.07
561.67%$13.23$778.84
571.67%$13.01$765.83
581.67%$12.79$753.04
MonthDepreciation %Depreciation AmtValue
00.00%$0.00$2,000.00
11.67%$33.40$1,966.60
21.67%$32.84$1,933.76
31.67%$32.29$1,901.46
41.67%$31.75$1,869.71
51.67%$31.22$1,838.49
61.67%$30.70$1,807.78
71.67%$30.19$1,777.59
81.67%$29.69$1,747.91
91.67%$29.19$1,718.72
101.67%$28.70$1,690.01
111.67%$28.22$1,661.79
121.67%$27.75$1,634.04
131.67%$27.29$1,606.75
141.67%$26.83$1,579.92
151.67%$26.38$1,553.53
161.67%$25.94$1,527.59
171.67%$25.51$1,502.08
181.67%$25.08$1,476.99
191.67%$24.67$1,452.33
201.67%$24.25$1,428.07
211.67%$23.85$1,404.23
221.67%$23.45$1,380.77
231.67%$23.06$1,357.72
241.67%$22.67$1,335.04
251.67%$22.30$1,312.75
261.67%$21.92$1,290.82
271.67%$21.56$1,269.27
281.67%$21.20$1,248.07
291.67%$20.84$1,227.23
301.67%$20.49$1,206.73
311.67%$20.15$1,186.58
321.67%$19.82$1,166.76
331.67%$19.48$1,147.28
341.67%$19.16$1,128.12
351.67%$18.84$1,109.28
361.67%$18.52$1,090.76
371.67%$18.22$1,072.54
381.67%$17.91$1,054.63
391.67%$17.61$1,037.02
401.67%$17.32$1,019.70
411.67%$17.03$1,002.67
421.67%$16.74$985.92
431.67%$16.46$969.46
441.67%$16.19$953.27
451.67%$15.92$937.35
461.67%$15.65$921.70
471.67%$15.39$906.30
481.67%$15.14$891.17
491.67%$14.88$876.29
501.67%$14.63$861.65
511.67%$14.39$847.26
521.67%$14.15$833.11
531.67%$13.91$819.20
541.67%$13.68$805.52
551.67%$13.45$792.07
561.67%$13.23$778.84
571.67%$13.01$765.83
581.67%$12.79$753.04
MonthDepreciation %Depreciation AmtValue
00.00%$0.00$2,000.00
11.67%$33.40$1,966.60
21.67%$32.84$1,933.76
31.67%$32.29$1,901.46
41.67%$31.75$1,869.71
51.67%$31.22$1,838.49
61.67%$30.70$1,807.78
71.67%$30.19$1,777.59
81.67%$29.69$1,747.91
91.67%$29.19$1,718.72
101.67%$28.70$1,690.01
111.67%$28.22$1,661.79
121.67%$27.75$1,634.04
131.67%$27.29$1,606.75
141.67%$26.83$1,579.92
151.67%$26.38$1,553.53
161.67%$25.94$1,527.59
171.67%$25.51$1,502.08
181.67%$25.08$1,476.99
191.67%$24.67$1,452.33
201.67%$24.25$1,428.07
211.67%$23.85$1,404.23
221.67%$23.45$1,380.77
231.67%$23.06$1,357.72
241.67%$22.67$1,335.04
251.67%$22.30$1,312.75
261.67%$21.92$1,290.82
271.67%$21.56$1,269.27
281.67%$21.20$1,248.07
291.67%$20.84$1,227.23
301.67%$20.49$1,206.73
311.67%$20.15$1,186.58
321.67%$19.82$1,166.76
331.67%$19.48$1,147.28
341.67%$19.16$1,128.12
351.67%$18.84$1,109.28
361.67%$18.52$1,090.76
371.67%$18.22$1,072.54
381.67%$17.91$1,054.63
391.67%$17.61$1,037.02
401.67%$17.32$1,019.70
411.67%$17.03$1,002.67
421.67%$16.74$985.92
431.67%$16.46$969.46
441.67%$16.19$953.27
451.67%$15.92$937.35
461.67%$15.65$921.70
471.67%$15.39$906.30
481.67%$15.14$891.17
491.67%$14.88$876.29
501.67%$14.63$861.65
511.67%$14.39$847.26
521.67%$14.15$833.11
531.67%$13.91$819.20
541.67%$13.68$805.52
551.67%$13.45$792.07
561.67%$13.23$778.84
571.67%$13.01$765.83
581.67%$12.79$753.04
Michael Hannigan, Internet Researcher
Category: General
Satisfied Customers: 8298
Experience: Extensive experience in research and problem solving.
Michael Hannigan and 112 other General Specialists are ready to help you

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