Hello. I can assist you with your question.
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.
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
Please let me know if you have any questions.
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?
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.
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.