Asset Depreciation Range

Asset Depreciation Range

Asset Depreciation Range means:
a limitation on the period over which assets may be depreciated. The ADR generally applies to property purchased between 1971 and 1981, allowing depreciable lives 20% longer or shorter than the guidelines provided by the U.S. Internal Revenue Service; it also provides the maximum amounts that can be spent annually on assets and still be deductible repairs. Former IRC (check if this IRC provision is current here) §167.

Example of Asset Depreciation Range:

Learn more about tax examples, explanations and calculations here.

Farm buildings purchased before 1981 may be depreciated over 25 years or within a range of 20 to 30 years, according to the asset depreciation range. Up to 5% of the cost can be spent annually and be treated as repair, not as capital improvement.

See Depreciation in the United States Encyclopedia of Law and Depreciation in the World Encyclopedia of Law.





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