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    SCENARIO: How to depreciate the following as one item or two?

    ITEM 1 - Purchase of a large truck ($15,000)

    ITEM 2 - another piece of equipment (large crane $45,000) will be welded to the truck.

    Thanks in advance
    Always cite your source for support to defend your opinion

    #2
    I would

    list each separate. I think the truck is going to have a shorter life than the crane.

    Comment


      #3
      Another point

      Wouldn't the crane have a different class life than the truck?

      Comment


        #4
        1

        The crane becomes part and parcel of the truck and needs only one depreciation schedule.
        OR section 179?
        Combo of 179 and depreciation? bonus depreciation?
        ChEAr$,
        Harlan Lunsford, EA n LA

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          #5
          Title of thread

          Reminded me of a joke:

          There are three kinds of people in this world.

          Those who can count, and those who can't.
          If you loan someone $20 and never see them again, it was probably worth it.

          Comment


            #6
            Any reference to the TAXBOOK page or IRS Code

            Originally posted by ChEAr$ View Post
            The crane becomes part and parcel of the truck and needs only one depreciation schedule.
            OR section 179?
            Combo of 179 and depreciation? bonus depreciation?
            I agree with you.

            Any reference to the TAXBOOK page or IRS Code

            thanks in advance
            Always cite your source for support to defend your opinion

            Comment


              #7
              Originally posted by SAMMY View Post
              SCENARIO: How to depreciate the following as one item or two?

              ITEM 1 - Purchase of a large truck ($15,000)

              ITEM 2 - another piece of equipment (large crane $45,000) will be welded to the truck.

              Thanks in advance
              2 ...I'm sure they have a different life
              This post is for discussion purposes only and should be verified with other sources before actual use.

              Many times I post additional info on the post, Click on "message board" for updated content.

              Comment


                #8
                I agree with Harlan

                that once welded on the truck they are one and the same for all intents.
                But a point can be made to keep separate. If the truck is used (at 15,000 it most likely is) and the crane is new , the 50% bonus depreciation could not be used on a combined unit, but could if kept separate for the crane.
                Does it really matter much in this case.? not really, they can probably expense all of it as a 179. Depreciation is an estimate anyway. And the difference between 5 and 7 year life is not great.
                AJ, EA

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                  #9
                  It is also easier when it comes to replacement....one might be replaces at a different time than the other.
                  Believe nothing you have not personally researched and verified.

                  Comment


                    #10
                    Depreciation of Crane

                    I have a client who bought a crane business, he bought 3 used cranes with the business. Does anyone have any guidance on the depreciation of a used crane?

                    Thanks.

                    Comment


                      #11
                      I always keep these type of items separate. But I feel either way is fine. Even though the crane or hoist is welded to the truck, it is easily removed.

                      Comment


                        #12
                        I should have specified the guidance of a used crane in terms of years to use?

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                          #13
                          Originally posted by Roger N View Post
                          I should have specified the guidance of a used crane in terms of years to use?
                          5,7 or 10 is what I use for big equipment. Used equipment I would do 5 or 7.

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