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What if you bought a computer 3 years ago and depreciated it on your taxes for the last years but intended to claim it for the 5 years, but it no longer useable and threw it away, how do you account for this on your taxes?

Tom Copeland

When an item, such as a computer, doesn't last as long as you are depreciating it, claim the rest of the years of depreciation in the year it's no longer useable. Claim this on Form 4562, line 17 (2010 form).

Patricia Stange

Since we have no basement and our closest neighbor/safety point is quite a distance to traverse with several kids, we have installed an underground storm shelter to use for safety in the event of severe weather. This is not attached to our house, but is in our back yard (not the fenced in play area used for day care), which is used for day care play. Can this be counted as a land improvement? I have been doing day care for 7+ years and have yet to depreciate land on my business taxes. Just wondering if this would be a wise deduction at this point. Any feedback is welcome. Thank you, Tom.


Yes, I believe you can depreciate your storm shelter as a land improvement (15 years). If you installed it in 2013 you can use the 50% bonus depreciation rule.


Is the $100 per individual item or a combination of similar items? Although we already had smoke detectors in our house, licensing required a different type of smoke detector. Individually they were only $50 but since we were required to buy 6 of them, it was almost $300. Is this a deduction or depreciation?


If I had a furnace installed in 2014 can I use the 50% bonus deprecation rule? Also, is it really 39 years for depreciation? I doubt it would ever last that long.


You can't use the 50% bonus depreciation rule on a furnace because it's a home improvement and home improvements don't qualify for this rule. If it wears out before 39 years you can deduct all the remaining depreciation in the year it wears out (assuming you are still in business).

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