Aircraft depreciation

Forum|Forum|3 years ago
April 13, 2023
1 reply
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I have a Hot Air Balloon I purchased in 2022 for business and personal use. 50/50. It was purchased in my LLC. When entering it into the TurboTax Home and Business, what asset class, and depreciation method would be entered? Also, purchased at the same time was a trailer and other equipment. What asset class and depreciation method would be entered for this equipment?

Thank you

TurboTax Home & Biz Windows

DaveF1006

The issue is that there is not an asset classification this can possibly fall under. After reviewing multiple internet sources and reading this IRS source, i would depreciate this using a 7-yr GDS classification.

IRS states that any property that does not have a class life and has not been designated by law as being in any other class should be considered a 7-yr GDS property class.

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scott8Author

Is there not an depreciation class for an aircraft?

DianeW777

Yes there is a class for aircraft. It has a class life of five years under the general depreciation system (GDS) and a six year class life under the alternative depreciation system (ADS). See the image below. Also click the link below for rules that reference aircraft (simply search the publication for aircraft).

IRS Publication 946

@DaveF1006 states that there is no official class life for a hot air balloon and is correct when indicating that a seven year class life should be used for any asset that has no specific class life. You will find that in the same tables.