2 Depreciation and Cost Recovery

cajun afrikaner folk, spanish funk

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Lyrics

[Verse 1]
Business bought a factory machine last spring
MACRS kicks in, depreciation's the thing
Property classes sort your assets clean
Three, five, seven years - pick your routine
Half-year convention splits the first year's take
Double declining balance makes the numbers break

[Chorus]
Depreciate, accelerate, recover every cost
MACRS classes, bonus cash, nothing will be lost
One-seven-nine expensing, limits you should know
Twenty-seven-five for homes, thirty-nine to go

[Verse 2]
Section one-seven-nine lets you expense today
Million dollar limit, phase-out comes to play
Bonus depreciation was one hundred percent
Through twenty-twenty-two, now the benefits are bent
Eighty, sixty, forty, twenty - phasing down each year
Listed property restrictions keep the limits clear

[Chorus]
Depreciate, accelerate, recover every cost
MACRS classes, bonus cash, nothing will be lost
One-seven-nine expensing, limits you should know
Twenty-seven-five for homes, thirty-nine to go

[Bridge]
Intangibles amortize fifteen years straight
Section one-nine-seven sets the standard rate
Luxury cars hit limits when the price climbs high
Real estate takes decades, watch the years fly by

[Verse 3]
Residential rental spreads through twenty-seven-five
Commercial buildings take thirty-nine to thrive
Mid-month convention for the real estate game
Straight-line method keeps the yearly take the same
Conventions, classes, methods intertwine
Cost recovery systems by design

[Chorus]
Depreciate, accelerate, recover every cost
MACRS classes, bonus cash, nothing will be lost
One-seven-nine expensing, limits you should know
Twenty-seven-five for homes, thirty-nine to go

[Outro]
From machinery to buildings, every asset finds its place
Cost recovery systems set the depreciation pace

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