Rent Expenses, Lease or Purchase?
You can get a copy of Publication 535 from the IRS by dialing 1-800-829-1040 or visit the IRS web sight. Q. Over how many years may I depreciate my tractor and/or trailer? A. Tractors are depreciated over a 3 year period and trailers over a 5 year period. Both of these time periods are specifically addressed in the IRS code, and in the “Table of Class Lives” in Publication 946.. Tractor units are asset class 00.26, and trailers are asset class 00.27. The General Depreciation System (GDS) should be used unless your tractor is used primarily outside the United States. Then it may be depreciated over a 4 year period using the Alternative Depreciation System (ADS). Trailers are depreciated over 5 years (GDS) or 6 years (ADS). The majority of amended tax returns we file are due to incorrect depreciation. If your tax preparer is telling you anything different than that which is specifically addressed by the IRS as outlined above, I would be hesitant in believing they know anything about the
