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Roger's not online right now (just checked the active expert list) ... I can help OR you can set Roget up on your home page as preferred expert (which will lock it for 24 hourse)... otherwise this will kick out to the question list anyway
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OK, still don't see him coming online; see this:
Bonus Depreciation – This allows additional depreciation deductions equal to 50% of the adjusted basis of qualified property placed in service before January 1, 2014. Additionally, the remaining 50% of the cost is depreciated over the tax life of the asset. Most fixed asset purchases made by financial institutions other than real property would fall under the definition of qualified property; however the property’s “original use” must commence with the taxpayer – in other words, only new property will qualify. ... from another source (that qualifies new more thoroughly):
The term original use generally means the first use of the asset. Simply put, the asset generally must be new, rather than pre-owned; however, there are some exceptions. New property initially used by a taxpayer for personal use and subsequently converted to business use meets the original-use requirement. Property acquired for use in a taxpayer’s business that was previously used by another taxpayer does not qualify regardless of how the previous owner used the property (i.e., for business or personal use). Capital expenditures to recondition or rebuild acquired or owned property satisfy the original use requirement, but purchases of reconditioned or rebuilt assets do not qualify. The determination of whether an asset is reconditioned or rebuilt (i.e., used) is a question of fact. However, an asset that contains used parts will not be considered used if the cost of the used parts is 20% or less of the total cost.
You may also want to take a look at this: http://www.bakertilly.com/Bonus-Depreciations-Rules-2013
I still don't see you coming into the chat session, so I'll move us to the "Q&A" mode. … Maybe that will help … (We can still continue a dialogue there, just not in real-time chat, as we can here)
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Thank you for the explanation on bonus depreciation. I understand now that only new equipment is allowed for bonus depreciation. But you have not answered my other question: Can we take the net book value (NBV) as our beginning tax cost in the asset purchase? If not, what should be the starting tax value to depreciate with MACRS?
Hi Kendrick,Yes, in an asset sale, the buyer uses purchase price (called Fair Value in an asset purchase).Because assets were essentially identified and a purchase price was determined, there is a step up to that Fair Value.The depreciated value that the seller had (in an asset sale) is irrelevant. If that happens to be what you purchased them for, then you (from a tax perspective) have a coincidence.In an asset sale, it's the PURCHASE price (FV) of the asset that determine its value on the books of the purchaser.Here's an excellent article: https://macabacus.com/accounting/types-of-acquisitions
Hope this helpsLane
Thanks much,Let me know if I can help further
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Regardless, thanks again,