It appears, however, that the CPA just started deducting a flat $500/year (based on the $5,000 left over after the $5,000 bonus deduction)
That's what I see, which indicates the CPA did not take into account the first year's depreciation correctly, based on the HY convention, even though they used the wrong convention too. It appears to me that particular CPA didn't do anything right. They have the fence incorrectly classified as rental, when it should be land improvement. I also don't think that sewer line is correctly classified either, as that also falls under land improvement per IRS Pub 946.To the best of my knowledge, the laws/rules were not any different on that front in the tax year the assets were placed in service. It's a mess.
