What is the useful life for depreciation of a semi-truck

Standard Depreciation Period for a Semi-Truck

The standard depreciation period for a semi-truck for tax purposes is determined by the IRS's Modified Accelerated Cost Recovery System (MACRS). Under MACRS, the property class for semi-trucks is typically classified as 5-year property. This classification is based on the General Depreciation System (GDS), which is the most commonly used depreciation method for business property.

Here are the key points regarding the depreciation of a semi-truck:

- Semi-trucks are generally classified as 5-year property under MACRS.

- Depreciation begins when the truck is placed in service and continues over its recovery period.

- The GDS uses declining balance methods and switches to straight-line when it maximizes the deduction.

- A taxpayer may also opt for the Alternative Depreciation System (ADS), which uses the straight-line method over a longer recovery period.

It's important to note that specific tax legislation and IRS guidance can provide additional rules or exceptions that may affect the depreciation period. For example, bonus depreciation or Section 179 expensing could allow for accelerated depreciation under certain circumstances.

For the most accurate and detailed information regarding the depreciation of semi-trucks, one should refer to the latest IRS publications, such as the Internal Revenue Bulletins, or the relevant sections of the U.S. Code.

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Sources:

26 U.S. Code § 167 - Depreciation 26 U.S. Code Chapter 1 - NORMAL TAXES AND SURTAXES 26 U.S. Code Subchapter B - Computation of Taxable Income 26 U.S. Code Part VI - ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS 2023-12-11

26 U.S. Code § 30D - Clean vehicle credit 26 U.S. Code Chapter 1 - NORMAL TAXES AND SURTAXES 26 U.S. Code Subchapter A - Determination of Tax Liability 26 U.S. Code Part IV - CREDITS AGAINST TAX 2023-12-11

Internal Revenue Bulletin: 2023-28 2023-07-09

26 U.S. Code § 167 - Depreciation 26 U.S. Code Chapter 1 - NORMAL TAXES AND SURTAXES 26 U.S. Code Subchapter B - Computation of Taxable Income 26 U.S. Code Part VI - ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS 2023-12-11

Internal Revenue Bulletin: 2013-12 2013-03-17

Internal Revenue Bulletin: 2006-33 2006-08-13