Another CLADR Shocker

[JG EA]

Trailer depreciation.

Do you depreciate a trailer used in business at 5 or 7 years?

I just saw in the cladr table the .27 asset life for trailers was 5 years. Is this some special definition of trailer and doesn't mean the thing that's pulled along behind a 250 Ford?

[erchess]

Well,

I looked at the table in TTB at the cladr table line you referenced and put it this way - if Brad or Bees or any other author with TMI thinks that a trailer for this purpose would not include about anything meant to be hauled down a road behind any motorized vehicle they should have said so and I think they would have. I realize that if an audit raises a question of tax theory we have to go behind TTB to the actual "authorities" but I think for purposes of writing a return when TTB speaks as in this case it's safe to follow.

And while I'm all for "nailing it" even with respect to the class life of an asset, if the IRS raises at audit the difference between five and seven years I will know that the auditor is convinced that I or my client is very crooked and the auditor is therefore determined to nail us for something even if not something significant. .

[JG EA]

I looked at the table in TTB at the cladr table line you referenced and put it this way - if Brad or Bees or any other author with TMI thinks that a trailer for this purpose would not include about anything meant to be hauled down a road behind any motorized vehicle they should have said so and I think they would have. I realize that if an audit raises a question of tax theory we have to go behind TTB to the actual "authorities" but I think for purposes of writing a return when TTB speaks as in this case it's safe to follow.

And while I'm all for "nailing it" even with respect to the class life of an asset, if the IRS raises at audit the difference between five and seven years I will know that the auditor is convinced that I or my client is very crooked and the auditor is therefore determined to nail us for something even if not something significant. .

Thanks for responding. I know its not that big of a deal - just one of those things that you run across and think "I've been doing this wrong forever."
As for TTB gurus, I'm not holding them responsible to define each item, but I've been taking trailers at 7 years forever and wonder if I am wrong. Because of the rest of the designation "trailer mounted containers" I think I'm going to conclude 7 years for the-hauled-down-the-road behind type.

[David1980]

Because of the rest of the designation "trailer mounted containers" I think I'm going to conclude 7 years for the-hauled-down-the-road behind type.

The actual table in Pub 946 says "Trailers and Trailer-Mounted Containers".