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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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I have a dump truck to depreciate and I 't know how to

Customer Question

I have a dump truck to depreciate and I don't know how to do it since there's no consider "auto' for depreciation purposes. Should I calculate first the estimate useful life of the truck?
Submitted: 1 year ago.
Category: Tax
Expert:  Tax-Scholar replied 1 year ago.

Hello and thanks for using Just Answers. A dump truck would be depreciated under MACRS with a 5 year life. The first year you would be able to depreciate 20% of the cost of the asset (assuming you are using the 1/2 year convention). You are correct that this is not an "auto" and therefore the listed property rules do not apply. Here is a link to the IRS depreciation guide. https://www.irs.gov/uac/About-Publication-946

In addition you'll want to think about taking bonus depreciation or IRC 179 to accelerate the deduction.

Expert:  Tax-Scholar replied 1 year ago.

I should add that for tax purposes you don't get to use the useful life and instead have to follow the asset class provided in the IRS table (originally published in Rev Proc 87-56)

Customer: replied 1 year ago.
thanks for your help.
Customer: replied 1 year ago.
what do you mean by saying that the listed property rules do not apply on autos?
Customer: replied 1 year ago.
I have a vehicle that is also use for the business , can I use also MACRS 200%