Hello again @Rick19744
I think it just occurred to me why this was so confusing to me.
I kept thinking that depreciating the asset over the allowed time in my accounting books was reliant on/connected to being able to take a depreciated deduction on my tax return. (and figuring out depreciation with the deduction formula)
So, am I right in assuming that, even though you may use the same formula for cost basis in both situations, depreciating in my books is not reliant on being able to take a deduction?
And, if you don't mind. One question that I think you would find simple.
How would you determine 'useful life' for a depreciation period on a 30+ year old piece of machinery that runs great and is receiving upgrades? I guess my question is, is 'useful life' (3 or 5 years allowed by IRS) connected at all to the age of the equipment? Or is that just a period of time allowed to take depreciation?
Thank you so much for your help! This question has been driving me crazy. And my research had not been clearing it up before your help!
