Level 3

How to Handle Depreciation Mixed Recovery Periods on Lump Sum Invoice

Forum|Forum|3 years ago
September 15, 2022
2 replies
18 views

I have a lump sum invoice for which the vendor is not able to break out accurately. The invoice covers items that are both 15yr and 39 year lives. A portion qualifies for bonus depreciation the balance does not. How should I enter on depreciation schedule 39yr on all, guess, leave the country?

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qbteachmt

Level 15

Was there a quote or estimate associated with the start of the scope or a contract? Can't someone do rough calculations on comparable costs on the same items based on the market at that time? For instance, a residence that has been improved over time, I often pull the building permits where the contractor filed for the scope and the value of the work, if there are no physical records to be found.

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T

TaxGuyBill

Level 15

@ACCLIGHT wrote:

I have a lump sum invoice for which the vendor is not able to break out accurately.

Not able? Or not willing?

It doesn't seem to difficult for the vendor to give an estimate for one list of items (15 year assets), and then another estimate for a list of different items (39 year assets).

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