Taxing Definitions

The Idle Asset Rule

Image source: openclipart.org When you buy long-lived assets for your business and place them in service, you can take a tax deduction for depreciation to recover your investment in the asset. “Placed in service” is defined as when the asset is first ready and available for a specifically assigned function in your business (see Income Tax Regs. Section 1.167(a)-11(e)(1)(i)). You…

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