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January 30, 2022
Question

What's a recovery period? Said I needed to add for my Chevy Tahoe I used for business?

  • January 30, 2022
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January 30, 2022

The recovery period of a property is the number of years over which you recover its cost or other basis.

It’s a complicated issue, but if you’ll see Which Property Class Applies Under GDS? in Publication 946 (2020), How To Depreciate Property, automobiles, taxis, buses and trucks are considered 5-year property, so the normal recovery period is 5 years.  You would be using GDS.

According to the publication:

Your use of either the General Depreciation System (GDS) or the Alternative Depreciation System (ADS) to depreciate property under MACRS determines what depreciation method and recovery period you use. You must generally use GDS unless you are specifically required by law to use ADS or you elect to use ADS.