Page 98 - Small Business IRS Training Guides

Slide 47 – Audit Tips

Provision 13203
Modifications of Treatment of Certain Farm
Property
Audit Tips
• Verify the date the asset was placed in service
• Review acquisition documents to identify whether property was
used or new
• Review the depreciation schedule to determine whether the
correct depreciation method(s) and recovery periods are used
• Review the Form 4562, Depreciation and Amortization, Including
Information on Listed Property, to determine whether the
taxpayer made any elections
• Inquire whether the taxpayer made any elections in prior years
• Reconcile the taxpayer’s depreciation schedule to the Form
4562

Tax Cuts and Jobs Act of 2017 | Course 73083a | SB/SE 47

Slide 48 –Summary

Provision 13203
Modifications of Treatment of Certain Farm
Property
Summary
Property placed in service after December 31, 2017

• Farmers are no longer required to use 150%
declining balance for 3, 5, 7, and 10-year property
(this method continues to apply to certain
property)
• The recovery period for new machinery and
equipment is reduced from 7 to 5 years (certain
limitations apply)

Tax Cuts and Jobs Act of 2017 | Course 73083a | SB/SE 48

Student Guide TCJA – Depreciation Provisions
73083-102 A-24 05/2019