Depreciating a new truck

I think you can depreciate a tractor for 3 years but spread it out for 4 years with partial depreciation. Trailers can be depreciated over 5 years. That's according to my CPA.

 

This is right, an over the road tractor is 3 years, a truck is depreciated for 5 years. We have over the road tractors, It's in the IRS regs if you dig a little. Over the road trailers are depreciated 5 years, again in the IRS regs if you dig a little.

@NorCenArk is also right about the 4 year aspect of it.

The asset is depreciated down to $0, then when it is sold, capital gains is paid on the sale price.

 

I didn't realise that tractors are different than trucks. Good to know

 

Recovery Periods by Property Class
Modified Accelerated Cost Recovery System MACRS
General Depreciation System GDS
GDS Property Type
3 Over-the–road (semi) tractors
5 Computers and peripherals, autos; pickup trucks; logging
equipment and road building equipment used by logging and
sawmill operators for their own account
5 Portable sawmills; over-the road trailers; typewriters, calculators,
adding and accounting machines, copiers, and duplicating
equipment
7 Office furniture, fixtures and equipment; farm machinery and
equipment, such as tractors and planting machines, and farm
fences; single-purpose agricultural or horticultural structures
placed in service before 1989; any property that does not have a
class life and is otherwise not classified under Section 168 (e) (2)
or (3)
10 Single-purpose agricultural or horticultural structures placed in
service after 1988; property with a class life of 16 years or more,
but less than 20 years
15 Land improvements such as bridges, culverts, non-farm fences,
temporary roads, and surfaces of permanent roads
20 Farm buildings (except single-purpose agricultural and
horticultural structures)