Depreciation class for cargo trailer

[Tax Prep by Deb]

Does anyone know what selection to make in ATX for a cargo trailer? As far as I can see it is a 5 year property, but none of the selections look even close. I would sure appreciate a second opinion. This is an enclosed trailer that a band uses to haul their equipment from gig to gig.

Deb!

[BulldogTom]

I am not sure if I am correct, but I have always used the machinery code (7 years) for trailers that we use in the construction industry. The other choice, because they are registered, is to put them under autos. Maybe someone else will chime in.

Tom

Hollister, CA

[jklcpa]

I used a 7-year life for those type trailers that are owned by my landscaper clients.

If you look up the class life, 5-yr property includes trailers and trailer-mounted containers (class life 00.27). That sounds like larger tractor-trailer type trailers to me, but it doesn't specify the size.

Maybe I was wrong to use the 7-year life, but I treated it like other general equipment.

[Terry D EA]

Personally, I would think the estimated useful life would come into consideration here. I agree with the 5 year class but also agree with Tom on the 7 year class. Sometimes we have to use our own good judgement as every item that could be depreciated is not specifically listed. I would lean toward 7 year class.

[Tax Prep by Deb]

You both confirmed my feeling. 7 year general purpose tool/equipment fits the best that I could see.

Thanks!

[schirallicpa]

I had to chime in only because I love your picture.

Anyway - I would use 7 years for their purpose. I happen to have a number of folks in the oil industry and they get 5 years. I think you need to consider the type of business as well. 9 times out of 10, it ends up being 179'd on mine anyway.

[DANRVAN]

Trailers are listed under Asset Class .26. The recovery period is 5 year GDS or 6 year ADS. I believe that is regardless of whether it is big trailer or little trailer.

In regards to construction machinery, the recovery periods are still 5 GDS and 6 ADS per Asset Class 15.0.

The IRS doesn't consider what you estimate the useful life to be. There are trailers out on the road which are over 20 years old.