SEE-2 - Business Tax Preparation - Section 2.3

Compute depreciation and gain or loss on business assets, including MACRS, Section 179 expensing, bonus depreciation, and Section 1245 and 1250 depreciation recapture.

Compute MACRS depreciation using the correct recovery period and convention, and apply Section 179 expensing and bonus depreciation, recognising the Section 179 dollar limit and taxable-income limitation. On disposition, compute realised gain or loss on Form 4797 and apply Section 1245 recapture (ordinary income to the extent of prior depreciation) and Section 1250 recapture, distinguishing them from Section 1231 capital treatment.

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