This period of time is called the recovery period. The general rule of thumb for any property not on this list is to classify it as 7-year property . SL-ADS A question that has persisted over the years in figuring deprecation is to determine how much depreciation to charge the first year when an item is bought part way through the year. Half year convention - All property placed in service is considered to be placed in service half way through the year. This requires some calculations.
Basis is a term used in figuring depreciation.
For property you buy, your original basis is usually its cost to you. For all practical purposes basis is the same as cost. Determine whether to use GDS or ADS 2. Determine what convention to use 4. Look up the percent of depreciation for the year in a depreciation schedule table 6.