Depreciation: Methods, Examples, and How to Calculate Tax Deductions
After you have set up a GAA, you generally figure the MACRS depreciation for it by using the applicable depreciation method, recovery period, and convention for the property in the GAA. For each GAA, record the depreciation allowance in a separate depreciation reserve account. The depreciable basis of the property acquired is the carryover basis of the property exchanged or involuntarily converted plus any excess basis. The election, if made, applies to both the acquired property and the exchanged [...]