SunTaxMan Posted July 29, 2011 Report Posted July 29, 2011 ATX has 7 years for depreciable life of cell phone. I am thinking 2, maybe 3 for USEFUL life -- for business purposes anyway. What are you doing with depreciable life? Thanks, Quote
joanmcq Posted July 29, 2011 Report Posted July 29, 2011 That's what it is, under MACRS. Stupid and unrealistic, but what it is. Quote
jainen Posted July 30, 2011 Report Posted July 30, 2011 >>Stupid and unrealistic<< It is neither. Remember that MACRS dates from the 1980's, when we had quite a different attitude about electronics. The hardware DOES last seven to ten years, but now it becomes "functionally obselescent" in two or three. In other words, it is only our vanity to get the latest upgrade, even though our old phone (or computer, etc.) still does just as well what it always did. There's generally not much tax impact in any case, but if you really need to deduct it over a very short life there are obviously many ways to do so. Quote
SunTaxMan Posted July 30, 2011 Author Report Posted July 30, 2011 Jainen, Very well put. Our middle son has finally gotten a smart phone after years of only, "I just want a phone for making phone calls." For him, 7 was about right. Quote
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