Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
United States of AmericaEnglishEN

Pick a language

CanadaEnglish CanadaFrançais
cancel
Showing results for 
Search instead for 
Did you mean: 
TurboTax Help
Intuit

Who determines the useful life of a business asset?

The IRS does. Each depreciable asset gets placed into an asset class, and each asset class has a useful life (also called a recovery period) associated with it.

For example, office furniture belongs to the Office Furniture, Fixtures, and Equipment asset class, which assigns a useful life of 7 or 10 years, depending on the depreciation method used. A car would belong to the Automobiles, Taxis business class with a useful life of 5 years, and so on.

Asset classes, recovery periods, and instructions can be found in Appendix B, which starts on page 98, of IRS Publication 946, How to Depreciate Property. Even though this publication is labeled 2019 the IRS has provided updates for 2020 and this is the guide to use.

We'll figure out which asset class and recovery period applies to your asset.

Was this helpful?

You must sign in to vote, reply, or post
Dynamic AdsDynamic Ads
Privacy Settings
v