Asset Class 57.0

[Gretel]

This is the asset class, we as professionals, have to use for our furniture & Equipment purchases. This is my question: Is it mandatory, or is it a choice to use this class or the regular classes for these types of purchases?

[veritas]

Classes

This is the asset class, we as professionals, have to use for our furniture & Equipment purchases. This is my question: Is it mandatory, or is it a choice to use this class or the regular classes for these types of purchases?

office furniture and fixtures is class 00.11

computers, printers class 00.12

calculators, copiers class 00.13

[Maribeth]

This is the asset class, we as professionals, have to use for our furniture & Equipment purchases. This is my question: Is it mandatory, or is it a choice to use this class or the regular classes for these types of purchases?

Well, as the depreciation life is 5 years and that classification covers professional services, retail & wholesale trade (and rental real estate appliances, carpet, etc!), that is the class I almost always use with my small businesses and with my services. Most of your professional services assets would already be 5 year property except for furniture & fixtures.

Do you want to go for a longer life?

Maribeth

[Gretel]

Well, as the depreciation life is 5 years and that classification covers professional services, retail & wholesale trade (and rental real estate appliances, carpet, etc!), that is the class I almost always use with my small businesses and with my services. Most of your professional services assets would already be 5 year property except for furniture & fixtures.

Do you want to go for a longer life?

Maribeth

Well, most of all I do not want to do it wrong any longer. It took me a while to realize that I did for my own business.

[Maribeth]

Then, yes, I use that class for my practice assets. And for most of my small businesses.

Maribeth

[Roland Slugg]

Although it is easy to not notice it, Appendix B in IRS Pub 946 is actually divided into two parts ... Tables B-1 and and B-2 ... and the instructions at the top of Appendix B describe (rather poorly IMO) how to use them. Table B-1 lists categories of assets, whereas Table B-2 lists categories of businesses/industries. If an asset type is listed in B-1, that takes precedence over things listed in B-2. If an asset is not described in B-1, then you look in B-2 and use the life listed there for that kind of business.

Almost all assets used by tax and accounting professionals are covered in the first three categories in Table B-1 ... 00.11, 00.12 and 00.13. Certainly everything in my office is.