why did the irs set guidelines for depreciation?
153904
to allow for companies to expense the cost of an asset over time.  generally, the time of depreciation is based on the life expectancy of the item.  honestly, it's a bit absurd and those of us who are good at it use this tool to never pay one cent of income tax.  it makes sense to depreciate, say a piece of equipment over seven years if, at the end of seven years the item really is worth nothing.  however, they allow depreciation on real estate and that's one of the reasons most of the millionaires were created in real estate.
1108740
It does not matter when you purchased it. You converted it from personal use to business use in 2006. Therefore, when deducting it as a business expense, you can only deduct it's fair market value at the time you converted it to business use, which had better be less than what you paid for it (since CPUs go down in price rather quickly). Be ready to prove the deduction in case IRS decides to check you out.\n\nAs mentioned above, you can use Section 179. All in all, unless you plan to hire a taxman, you should get acquainted with the IRS website and relevant publications.
1025881
Sounds like a homework question.\n\nBy the matching principal, you recognize expenses in the same period as the revenues that they generated.  In this case, it is depreciation expense.
1167263
Here's the catch. When you sell a home, the transaction never goes beyond the county level. The only records the IRS will ever see are those provided by the bank, and what YOU tell them on your tax return. There is no space on the tax return that requires you to document how much PROFIT you made. You can buy a home for $100k, and sell lit 6 months later for $150k, but who's to say you didn't put $45k into repairs and remodeling, costs of selling, etc.? That means that you only have to declare $5k profit, IF you don't put it into another house. Don't volunteer any information, wait until they ask for it. They have to prove that you owe them money, you don't have to prove that you don't.
171158
Long life assets, as opposed to short life consumables are often treated as capital equipment by a company and tax deductions for depreciation may be allowed over the life of the asset.  Check with a tax advisor.  Of course to obtain full life of the asset it may be necessary to set up an effective preventative maintenance program based on the vendor's technical recommendations, often contained in the equipment's technical manual.
609757
The IRS instructions are linked below. Is that what you were looking for?
172216
from the horses mouth!\nguidelines\nhttp://www.irs.gov/publications/p561/ar02.html\n\nvalues\nhttp://tinyurl.com/28nan
230171
Complicated question.  The IRS and DOL set the general rules, but the ultimate guide for each plan is the plan document.  This document has to be updated constantly for changes in the rules by the IRS/DOL.  You are entitled to have an SPD, or Summary Plan Description, by law; that will give you all you need to know.  Request one from HR.\n\nThe plan sponsor (usually the company / board / Pres / CEO / HR, depending on size of the organization) generally make(s) the decisions on how the plan will actually work within the framework provided by the IRS/DOL.  Do you have a more specific question relating to a feature of the plan?\n\nGood luck!
812345
I'm just going off the top of my head here without looking anything up, so just use my answer as a guide and not fact.  (Because staring at the code is factual, but sometimes doesn't get you very far in thought.)\n\nThe rental property.  Chop this up into three components - land, building and personal property.\n\nLand, as you know, is not depreciable.  But it should be listed as a separate component of the sale.  \nThe building is depreciable, but will also be under an additional code section, 1250.\n\nThe general rule starts with section 1231 property.  Then, depending on what it is, it might ALSO be 1245 property or 1250 property.  But just to keep things simple, think 1245 = equipment and 1250=buildings.\n\nBoth 1245 and 1250 pretty much say this: When you sell the asset, the amount over adjusted basis, up to the extent of depreciation taken, is ordinary gain.\n\nFor example.  I bought a piece of equipment a few years back for 10,000.  Tuesday, when I sold it, it had a tax adjusted basis of 1,000 (10,000 historical value less 9,000 of accumulated tax depreciation taken).  I collected 5,000.  In this case, ALL of my 4,000 gain (5,000 sales price less 1,000 adjusted basis) will be ordinary income.  \nLet's say I sold it for 12,000.  9,000 of my gain would be ordinary and 3,000 capital gains.  \nNow I'm babbling.  But in a nutshell, you are recapturing the depreciation expense at ordinary, just like you took the expense (over time).\n1250 for buildings has something similar, but not many have that issue anymore (unless they were purchased over a decade ago or so).  There is some special additional tax on the gain or special rate.\nBut the losses are ordinary, thankfully.\nAnd I feel like I'm getting off track here, but I'm trying.  :)\n\nBut onto the land.  It depends.  And perhaps this is where saying more info is needed might help.\nIf this is a separate piece of land accounted for seperately and Mary can prove that she wasn't going to improve anything, then there might be support for the claim that it is a capital asset and the gains are capital.\nHowever, that would be really agressive to me considering it saysing "holding for future development" and if there has been anything substantial done to the property.\nIn short, you will want to check out code section 1237 for reference too although it doesn't exactly fit your problem.\n\nAnd last but not least, I'll clog this answer with an Explanation nabbed from my own stuff.  Good luck on your research and forgive me for such a lengthy answer.  Usually I hate stuffed answers.  Cheers!\n\nReal property produces capital gain or loss on its sale or exchange if it's a capital asset. The main reasons for the exclusion of real property from the capital asset category are (1) that it's property held by the taxpayer primarily for sale to customers in the ordinary course of his business, and (2) that it's real property used in his business. Code Sec. 1221(a)(1) , Code Sec. 1221(a)(2) . However, the sale or exchange of real property used in a business (including rental realty), or the involuntary conversion of such property or real property that is a capital asset, can produce a Code Sec. 1231 gain or loss. \n\nThe fact that real property is held primarily for sale to customers in the ordinary course of a taxpayer's business precludes it from being either a capital asset or a Code Sec. 1231 asset (business-use property). Code Sec. 1221(a)(1) ; Code Sec. 1231(b)(1)(B) . The factual question of whether real property was so held gave rise to intensive litigation. Cases decided under Code Sec. 1231 are covered as part of the question of what property is used in a business. Decisions delineating property that is a capital asset are covered in this subdivision. The special rules of Code Sec. 1237 , allow taxpayers other than C corporations to obtain limited capital gain as to property subdivided for sale under certain circumstance
1109722
http://en.wikipedia.org/wiki/Depreciation
202620
good question. i need that info too.\ntry irs.gov
1083775
It's automatically deductible and doesn't really need to be separately itemized.  It just increases your cost basis effectively by lowering your total profit.
1040456
I read a news article on the subject.  Since you piqued my interest, I looked it up.\n\nSection 1043 of the Internal Revenue Code was enacted in 1989.  It allows executive branch employees to defer - not avoid - tax on gains realized when they are forced to sell their holdings due to conflict of interest rules.  The proceeds must be reinvested in Treasury securities or approved mutual funds.\n\nThe basis of the reinvestment property is adjusted so that the deferred gain will be taxed when that property is disposed of.  \n\nI am not aware of any rule that would allow that gain to be untaxed because he is a federal employee.
211766
you need to keep financial records for 7 years.  You can refile and make adjustments going back 3, but the IRS is allowed to go back 7 years.
173701
I am not quite sure what it is you are asking, but there is some limited information at the IRS site on estate taxes.  \n\nHope this site helps.
1112274
Interhitance Taxes are somewhat obsolete although some states still have those kinds of taxes. If you are talking about the estate tax, the estate tax is deducted from the assets of the estate and then your inheritance is based on the residual value of the estate. \n\nIt is all based upon percentages and dollar values of the estate. For these kinds of problems contact a CPA or Title and Trust company in your area. \n\n\n\nIRS CIRCULAR 230 NOTICE:  To ensure compliance with requirements imposed by the IRS, we inform you that, unless specifically indicated otherwise, any tax advice contained in this communication (including any attachments) was not intended or \nwritten to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any tax-related matter addressed  herein.
551985
It has to do with both IRS and Anti-Money Laundering regulations.  All cash transactions over $10,000 or series of transactions which are over $10,000 must be reported to the IRS.