1 or 2

[TAXNJ]

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

[arlo]

I would

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

[erchess]

Another point

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

[ChEAr$]

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?

[RitaB]

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.

[TAXNJ]

Any reference to the TAXBOOK page or IRS Code

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

[BOB W]

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

[AJsTax]

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.

[taxea]

It is also easier when it comes to replacement....one might be replaces at a different time than the other.

[KC-CPA]

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.

[Twin Turbo Z]

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.

[KC-CPA]

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

[Twin Turbo Z]

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.