Real property- The cost of the asset is deducted over a stated recovery period that is shorter than the

estimated useful life of the asset in most cases. The recovery period for new aand used property is
identical. Salvage values are ignored.

Real property- Section -1250

27.5 -Residential rental property

39 years- Most other buildings

-Land is not depreciated

-Salvage value of the building is ignored.

Straight line method is used

Depreciate the property for ½ month when placed into service and ½ month in disposal.

The method of depreciation is for REAL PROPERTY IS straight line and the business must use mid-month
convention.

Tangible personal property: Section:1245-non-realty(section 1245) varies

3 years-Small tools, software

5 years-Automobiles, light trucks, copiers, computers and printers

7-years Most other personal property, equipment office furniture and desks

Switch to straight line when it results in greater deduction

Straight line may be elected instead of DDB.

150% declining balance.

Salvage value is ignored

Half year convention

Mid quarter convention

Section 179-

Can immedietly expense depreciable property rather than capitalize it.