Free Income Tax Filing2008 Tax ReturnFile 2010 Taxes FreeAmend A Tax ReturnUnemployed File Taxes1040ez Turbotax FreeTax Software ComparisonFree E-file For 2011H&r Block Tax ReturnsHow Can I File My 2011 Taxes For FreeAmended TaxAmended TaxAmend 2010 Tax Return OnlineH & R Block Online Taxes2011 1040ez FormTax Form 1040 2012Amended 1040ez Form2012 Form 1040ezFreestatetaxact.comIrs 1040x InstructionsHow To File Amended 2012 Tax ReturnWhere Can I Do My State Taxes Online For FreeForgot To File Taxes 2012Irs Gov 1040xForm 1040 For 2011 Tax YearFree Tax CalculatorH&r Block Home EditionFree 2011 Taxes OnlineTax Form 1040ez Year 2013Filing An Amended Tax ReturnNon Resident State Tax ReturnFile 1040ez For FreeAmended Tax FormEz Tax FormH&r Block Free Tax SoftwareHow Soon Can I File My 2012 Taxes In 20131040ez Printable Tax FormsAmending Tax Return Turbotax2012 Amended Federal Tax Return FormExample Of 1040x Amended Tax Returns For 2013
Freetaxusa2012 10. Freetaxusa2012 Indoor Tanning Services Tax Table of Contents The tax on indoor tanning service is 10% of the amount paid for that service. Freetaxusa2012 The tax is paid by the person paying for the services and is collected by the person receiving payment for the indoor tanning services. Freetaxusa2012 Definition of indoor tanning services. Freetaxusa2012 Indoor tanning service means a service employing any electronic product designed to incorporate one or more ultraviolet lamps and intended for the irradiation of an individual by ultraviolet radiation, with wavelengths in air between 200 and 400 nanometers, to induce skin tanning. Freetaxusa2012 The term does not include phototherapy service performed by, and on the premises of, a licensed medical professional (such as a dermatologist, psychologist, or registered nurse). Freetaxusa2012 See regulations section 49. Freetaxusa2012 5000B-1 for more information, and special rules for qualified physical fitness facilities, undesignated payment cards, and bundled payments. Freetaxusa2012 File Form 720. Freetaxusa2012 The person receiving the payment for indoor tanning services (collector) must collect and remit the tax and file the return. Freetaxusa2012 If the tax is not collected for any reason, the collector is liable for the tax. Freetaxusa2012 The collector is not required to make semimonthly deposits of the tax. Freetaxusa2012 Prev Up Next Home More Online Publications
State and Local Consumer Agencies in Delaware
Consumer Protection Offices
City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.
State Consumer Protection Offices
Delaware Department of Justice
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The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.
Office of the State Bank Commissioner
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Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.
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Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.
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State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.
Public Service Commission
Public Service Commission
Public Service Commission
Cannon Building, Suite 100
861 Silver Lake Blvd.
Dover, DE 19904
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Freetaxusa2012 Other Methods of Depreciation Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: How To Figure the DeductionBasis Useful Life Salvage Value Methods To UseStraight Line Method Declining Balance Method Income Forecast Method How To Change Methods DispositionsSale or exchange. Freetaxusa2012 Property not disposed of or abandoned. Freetaxusa2012 Special rule for normal retirements from item accounts. Freetaxusa2012 Abandoned property. Freetaxusa2012 Single item accounts. Freetaxusa2012 Multiple property account. Freetaxusa2012 Topics - This chapter discusses: How to figure the deduction Methods to use How to change methods Dispositions Useful Items - You may want to see: Publication 544 Sales and Other Dispositions of Assets 551 Basis of Assets 583 Starting a Business and Keeping Records 946 How To Depreciate Property Form (and Instructions) 3115 Application for Change in Accounting Method 4562 Depreciation and Amortization Schedule C (Form 1040) Profit or Loss From Business If your property is being depreciated under ACRS, you must continue to use rules for depreciation that applied when you placed the property in service. Freetaxusa2012 If your property qualified for MACRS, you must depreciate it under MACRS. Freetaxusa2012 See Publication 946. Freetaxusa2012 However, you cannot use MACRS for certain property because of special rules that exclude it from MACRS. Freetaxusa2012 Also, you can elect to exclude certain property from being depreciated under MACRS. Freetaxusa2012 Property that you cannot depreciate using MACRS includes: Intangible property, Property you can elect to exclude from MACRS that you properly depreciate under a method that is not based on a term of years, Certain public utility property, Any motion picture film or video tape, Any sound recording, and Certain real and personal property placed in service before 1987. Freetaxusa2012 Intangible property. Freetaxusa2012 You cannot depreciate intangible property under ACRS or MACRS. Freetaxusa2012 You depreciate intangible property using any other reasonable method, usually, the straight line method. Freetaxusa2012 Note. Freetaxusa2012 The cost of certain intangible property that you acquire after August 10, 1993, must be amortized over a 15-year period. Freetaxusa2012 For more information, see chapter 12 of Publication 535. Freetaxusa2012 Public utility property. Freetaxusa2012 The law excludes from MACRS any public utility property for which the taxpayer does not use a normalization method of accounting. Freetaxusa2012 This type of property is subject to depreciation under a special rule. Freetaxusa2012 Videocassettes. Freetaxusa2012 If you are in the videocassette rental business, you can depreciate those videocassettes purchased for rental. Freetaxusa2012 You can depreciate the cost less salvage value of those videocassettes that have a useful life over one year using either: The straight line method, or The income forecast method. Freetaxusa2012 The straight line method, salvage value, and useful life are discussed later under Methods To Use. Freetaxusa2012 You can deduct in the year of purchase as a business expense the cost of any cassette that has a useful life of one year or less. Freetaxusa2012 How To Figure the Deduction Two other reasonable methods can be used to figure your deduction for property not covered under ACRS or MACRS. Freetaxusa2012 These methods are straight line and declining balance. Freetaxusa2012 To figure depreciation using these methods, you must generally determine three things about the property you intend to depreciate. Freetaxusa2012 They are: The basis, The useful life, and The estimated salvage value at the end of its useful life. Freetaxusa2012 The amount of the deduction in any year also depends on which method of depreciation you choose. Freetaxusa2012 Basis To deduct the proper amount of depreciation each year, first determine your basis in the property you intend to depreciate. Freetaxusa2012 The basis used for figuring depreciation is the same as the basis that would be used for figuring the gain on a sale. Freetaxusa2012 Your original basis is usually the purchase price. Freetaxusa2012 However, if you acquire property in some other way, such as inheriting it, getting it as a gift, or building it yourself, you have to figure your original basis in a different way. Freetaxusa2012 Adjusted basis. Freetaxusa2012 Events will often change the basis of property. Freetaxusa2012 When this occurs, the changed basis is called the adjusted basis. Freetaxusa2012 Some events, such as improvements you make, increase basis. Freetaxusa2012 Events such as deducting casualty losses and depreciation decrease basis. Freetaxusa2012 If basis is adjusted, the depreciation deduction may also have to be changed, depending on the reason for the adjustment and the method of depreciation you are using. Freetaxusa2012 Publication 551 explains how to figure basis for property acquired in different ways. Freetaxusa2012 It also discusses what items increase and decrease basis, how to figure adjusted basis, and how to allocate cost if you buy several pieces of property at one time. Freetaxusa2012 Useful Life The useful life of a piece of property is an estimate of how long you can expect to use it in your trade or business, or to produce income. Freetaxusa2012 It is the length of time over which you will make yearly depreciation deductions of your basis in the property. Freetaxusa2012 It is how long it will continue to be useful to you, not how long the property will last. Freetaxusa2012 Many things affect the useful life of property, such as: Frequency of use, Age when acquired, Your repair policy, and Environmental conditions. Freetaxusa2012 The useful life can also be affected by technological improvements, progress in the arts, reasonably foreseeable economic changes, shifting of business centers, prohibitory laws, and other causes. Freetaxusa2012 Consider all these factors before you arrive at a useful life for your property. Freetaxusa2012 The useful life of the same type of property varies from user to user. Freetaxusa2012 When you determine the useful life of your property, keep in mind your own experience with similar property. Freetaxusa2012 You can use the general experience of the industry you are in until you are able to determine a useful life of your property from your own experience. Freetaxusa2012 Change in useful life. Freetaxusa2012 You base your estimate of useful life on certain facts. Freetaxusa2012 If these facts change significantly, you can adjust your estimate of the remaining useful life. Freetaxusa2012 However, you redetermine the estimated useful life only when the change is substantial and there is a clear reason for making the change. Freetaxusa2012 Salvage Value It is important for you to accurately determine the correct salvage value of the property you want to depreciate. Freetaxusa2012 You generally cannot depreciate property below a reasonable salvage value. Freetaxusa2012 Determining salvage value. Freetaxusa2012 Salvage value is the estimated value of property at the end of its useful life. Freetaxusa2012 It is what you expect to get for the property if you sell it after you can no longer use it productively. Freetaxusa2012 You must estimate the salvage value of a piece of property when you first acquire it. Freetaxusa2012 Salvage value is affected both by how you use the property and how long you use it. Freetaxusa2012 If it is your policy to dispose of property that is still in good operating condition, the salvage value can be relatively large. Freetaxusa2012 However, if your policy is to use property until it is no longer usable, its salvage value can be its junk value. Freetaxusa2012 Changing salvage value. Freetaxusa2012 Once you determine the salvage value for property, you should not change it merely because prices have changed. Freetaxusa2012 However, if you redetermine the useful life of property, as discussed earlier under Change in useful life, you can also redetermine the salvage value. Freetaxusa2012 When you redetermine the salvage value, take into account the facts that exist at the time. Freetaxusa2012 Net salvage. Freetaxusa2012 Net salvage is the salvage value of property minus what it costs to remove it when you dispose of it. Freetaxusa2012 You can choose either salvage value or net salvage when you figure depreciation. Freetaxusa2012 You must consistently use the one you choose and the treatment of the costs of removal must be consistent with the practice adopted. Freetaxusa2012 However, if the cost to remove the property is more than the estimated salvage value, then net salvage is zero. Freetaxusa2012 Your salvage value can never be less than zero. Freetaxusa2012 Ten percent rule. Freetaxusa2012 If you acquire personal property that has a useful life of 3 years or more, you can use an amount for salvage value that is less than your actual estimate. Freetaxusa2012 You can subtract from your estimate of salvage value an amount equal to 10% of your basis in the property. Freetaxusa2012 If salvage value is less than 10% of basis, you can ignore salvage value when you figure depreciation. Freetaxusa2012 Methods To Use Two methods of depreciation are the straight line and declining balance methods. Freetaxusa2012 If ACRS or MACRS does not apply, you can use one of these methods. Freetaxusa2012 The straight line and declining balance methods discussed in this section are not figured in the same way as straight line or declining balance methods under MACRS. Freetaxusa2012 Straight Line Method Before 1981, you could use any reasonable method for every kind of depreciable property. Freetaxusa2012 One of these methods was the straight line method. Freetaxusa2012 This method was also used for intangible property. Freetaxusa2012 It lets you deduct the same amount of depreciation each year. Freetaxusa2012 To figure your deduction, determine the adjusted basis of your property, its salvage value, and its estimated useful life. Freetaxusa2012 Subtract the salvage value, if any, from the adjusted basis. Freetaxusa2012 The balance is the total amount of depreciation you can take over the useful life of the property. Freetaxusa2012 Divide the balance by the number of years remaining in the useful life. Freetaxusa2012 This gives you the amount of your yearly depreciation deduction. Freetaxusa2012 Unless there is a big change in adjusted basis, or useful life, this amount will stay the same throughout the time you depreciate the property. Freetaxusa2012 If, in the first year, you use the property for less than a full year, you must prorate your depreciation deduction for the number of months in use. Freetaxusa2012 Example. Freetaxusa2012 In April 1994, Frank bought a franchise for $5,600. Freetaxusa2012 It expires in 10 years. Freetaxusa2012 This property is intangible property that cannot be depreciated under MACRS. Freetaxusa2012 Frank depreciates the franchise under the straight line method, using a 10-year useful life and no salvage value. Freetaxusa2012 He takes the $5,600 basis and divides that amount by 10 years ($5,600 ÷ 10 = $560, a full year's use). Freetaxusa2012 He must prorate the $560 for his 9 months of use in 1994. Freetaxusa2012 This gives him a deduction of $420 ($560 ÷ 9/12). Freetaxusa2012 In 1995, Frank can deduct $560 for the full year. Freetaxusa2012 Declining Balance Method The declining balance method allows you to recover a larger amount of the cost of the property in the early years of your use of the property. Freetaxusa2012 The rate cannot be more than twice the straight line rate. Freetaxusa2012 Rate of depreciation. Freetaxusa2012 Under this method, you must determine your declining balance rate of depreciation. Freetaxusa2012 The initial step is to: Divide the number 1 by the useful life of your property to get a straight line rate. Freetaxusa2012 (For example, if property has a useful life of 5 years, its normal straight line rate of depreciation is ⅕, or 20%. Freetaxusa2012 ) Multiply this straight line rate by a number that is more than 1 but not more than 2 to determine the declining balance rate. Freetaxusa2012 Unless there is a change in the useful life during the time you depreciate the property, the rate of depreciation generally will not change. Freetaxusa2012 Depreciation deductions. Freetaxusa2012 After you determine the rate of depreciation, multiply the adjusted basis of the property by it. Freetaxusa2012 This gives you the amount of your deduction. Freetaxusa2012 For example, if your adjusted basis at the beginning of the first year is $10,000, and your declining balance rate is 20%, your depreciation deduction for the first year is $2,000 ($10,000 ÷ 20%). Freetaxusa2012 To figure your depreciation deduction in the second year, you must first adjust the basis for the amount of depreciation you deducted in the first year. Freetaxusa2012 Subtract the previous year's depreciation from your basis ($10,000 - $2,000 = $8,000). Freetaxusa2012 Multiply this amount by the rate of depreciation ($8,000 ÷ 20% = $1,600). Freetaxusa2012 Your depreciation deduction for the second year is $1,600. Freetaxusa2012 As you can see from this example, your adjusted basis in the property gets smaller each year. Freetaxusa2012 Also, under this method, deductions are larger in the earlier years and smaller in the later years. Freetaxusa2012 You can make a change to the straight line method without consent. Freetaxusa2012 Salvage value. Freetaxusa2012 Do not subtract salvage value when you figure your yearly depreciation deductions under the declining balance method. Freetaxusa2012 However, you cannot depreciate the property below its reasonable salvage value. Freetaxusa2012 Determine salvage value using the rules discussed earlier, including the special 10% rule. Freetaxusa2012 Example. Freetaxusa2012 If your adjusted basis has been decreased to $1,000 and the rate of depreciation is 20%, your depreciation deduction should be $200. Freetaxusa2012 But if your estimate of salvage value was $900, you can only deduct $100. Freetaxusa2012 This is because $100 is the amount that would lower your adjusted basis to equal salvage value. Freetaxusa2012 Income Forecast Method The income forecast method requires income projections for each videocassette or group of videocassettes. Freetaxusa2012 You can group the videocassettes by title for making this projection. Freetaxusa2012 You determine the depreciation by applying a fraction to the cost less salvage value of the cassette. Freetaxusa2012 The numerator is the income from the videocassette for the tax year and the denominator is the total projected income for the cassette. Freetaxusa2012 For more information on the income forecast method, see Revenue Ruling 60-358 in Cumulative Bulletin 1960, Volume 2, on page 68. Freetaxusa2012 How To Change Methods In some cases, you may change your method of depreciation for property depreciated under a reasonable method. Freetaxusa2012 If you change your method of depreciation, it is generally a change in your method of accounting. Freetaxusa2012 You must get IRS consent before making the change. Freetaxusa2012 However, you do not need permission for certain changes in your method of depreciation. Freetaxusa2012 The rules discussed in this section do not apply to property depreciated under ACRS or MACRS. Freetaxusa2012 For information on ACRS elections,see Revocation of election, in chapter 1 under Alternate ACRS Method. Freetaxusa2012 Change to the straight line method. Freetaxusa2012 You can change from the declining balance method to the straight line method at any time during the useful life of your property without IRS consent. Freetaxusa2012 However, if you have a written agreement with the IRS that prohibits a change, you must first get IRS permission. Freetaxusa2012 When the change is made, figure depreciation based on your adjusted basis in the property at that time. Freetaxusa2012 Your adjusted basis takes into account all previous depreciation deductions. Freetaxusa2012 Use the estimated remaining useful life of your property at the time of change and its estimated salvage value. Freetaxusa2012 You can change from the declining balance method to straight line only on the original tax return for the year you first use the straight line method. Freetaxusa2012 You cannot make the change on an amended return filed after the due date of the original return (including extensions). Freetaxusa2012 When you make the change, attach a statement to your tax return showing: When you acquired the property, Its original cost or other original basis, The total amount claimed for depreciation and other allowances since you acquired it, Its salvage value and remaining useful life, and A description of the property and its use. Freetaxusa2012 After you change to straight line, you cannot change back to the declining balance method or to any other method for a period of 10 years without written permission from the IRS. Freetaxusa2012 Changes that require permission. Freetaxusa2012 For most other changes in method of depreciation, you must get permission from the IRS. Freetaxusa2012 To request a change in method of depreciation, file Form 3115. Freetaxusa2012 File the application within the first 180 days of the tax year the change is to become effective. Freetaxusa2012 In most cases, there is a user fee that must accompany Form 3115. Freetaxusa2012 See the instructions for Form 3115 to determine if a fee is required. Freetaxusa2012 Changes granted automatically. Freetaxusa2012 The IRS automatically approves certain changes of a method of depreciation. Freetaxusa2012 But, you must file Form 3115 for these automatic changes. Freetaxusa2012 However, IRS can deny permission if Form 3115 is not filed on time. Freetaxusa2012 For more information on automatic changes, see Revenue Procedure 74-11, 1974-1 C. Freetaxusa2012 B. Freetaxusa2012 420. Freetaxusa2012 Changes for which approval is not automatic. Freetaxusa2012 The automatic change procedures do not apply to: Property or an account where you made a change in depreciation within the last 10 tax years (unless the change was made under the Class Life System), Class Life Asset Depreciation Range System, and Public utility property. Freetaxusa2012 You must request and receive permission for these changes. Freetaxusa2012 To make the request, file Form 3115 during the first 180 days of the tax year for which you want the change to be effective. Freetaxusa2012 Change from an improper method. Freetaxusa2012 If the IRS disallows the method you are using, you do not need permission to change to a proper method. Freetaxusa2012 You can adopt the straight line method, or any other method that would have been permitted if you had used it from the beginning. Freetaxusa2012 If you file your tax return using an improper method, but later file an amended return, you can use a proper method on the amended return without getting IRS permission. Freetaxusa2012 However, you must file the amended return before the filing date for the next tax year. Freetaxusa2012 Dispositions Retirement is the permanent withdrawal of depreciable property from use in your trade or business or for the production of income. Freetaxusa2012 You can do this by selling, exchanging, or abandoning the item of property. Freetaxusa2012 You can also withdraw it from use without disposing of it. Freetaxusa2012 For example, you could place it in a supplies or scrap account. Freetaxusa2012 Retirements can be either normal or abnormal depending on all facts and circumstances. Freetaxusa2012 The rules discussed next do not apply to MACRS and ACRS property. Freetaxusa2012 Normal retirement. Freetaxusa2012 A normal retirement is a permanent withdrawal of depreciable property from use if the following apply: The retirement is made within the useful life you estimated originally, and The property has reached a condition at which you customarily retire or would retire similar property from use. Freetaxusa2012 A retirement is generally considered normal unless you can show that you retired the property because of a reason you did not consider when you originally estimated the useful life of the property. Freetaxusa2012 Abnormal retirement. Freetaxusa2012 A retirement can be abnormal if you withdraw the property early or under other circumstances. Freetaxusa2012 For example, if the property is damaged by a fire or suddenly becomes obsolete and is now useless. Freetaxusa2012 Gain or loss on retirement. Freetaxusa2012 There are special rules for figuring the gain or loss on retirement of property. Freetaxusa2012 The gain or loss will depend on several factors. Freetaxusa2012 These include the type of withdrawal, if the withdrawal was from a single property or multiple property account, and if the retirement was normal or abnormal. Freetaxusa2012 A single property account contains only one item of property. Freetaxusa2012 A multiple property account is one in which several items have been combined with a single rate of depreciation assigned to the entire account. Freetaxusa2012 Sale or exchange. Freetaxusa2012 If property is retired by sale or exchange, you figure gain or loss by the usual rules that apply to sales or other dispositions of property. Freetaxusa2012 See Publication 544. Freetaxusa2012 Property not disposed of or abandoned. Freetaxusa2012 If property is retired permanently, but not disposed of or physically abandoned, you do not recognize gain. Freetaxusa2012 You are allowed a loss in such a case, but only if the retirement is: An abnormal retirement, A normal retirement from a single property account in which you determined the life of each item of property separately, or A normal retirement from a multiple property account in which the depreciation rate is based on the maximum expected life of the longest lived item of property and the loss occurs before the expiration of the full useful life. Freetaxusa2012 However, you are not allowed a loss if the depreciation rate is based on the average useful life of the items of property in the account. Freetaxusa2012 To figure your loss, subtract the estimated salvage or fair market value of the property at the date of retirement, whichever is more, from its adjusted basis. Freetaxusa2012 Special rule for normal retirements from item accounts. Freetaxusa2012 You can generally deduct losses upon retirement of a few depreciable items of property with similar useful lives, if: You account for each one in a separate account, and You use the average useful life to figure depreciation. Freetaxusa2012 However, you cannot deduct losses if you use the average useful life to figure depreciation and they have a wide range of useful lives. Freetaxusa2012 If you have a large number of depreciable property items and use average useful lives to figure depreciation, you cannot deduct the losses upon normal retirements from these accounts. Freetaxusa2012 Abandoned property. Freetaxusa2012 If you physically abandon property, you can deduct as a loss the adjusted basis of the property at the time of its abandonment. Freetaxusa2012 However, your intent must be to discard the property so that you will not use it again or retrieve it for sale, exchange, or other disposition. Freetaxusa2012 Basis of property retired. Freetaxusa2012 The basis for figuring gain or loss on the retirement of property is its adjusted basis at the time of retirement, as determined in the following discussions. Freetaxusa2012 Single item accounts. Freetaxusa2012 If an item of property is accounted for in a single item account, the adjusted basis is the basis you would use to figure gain or loss for a sale or exchange of the property. Freetaxusa2012 This is generally the cost or other basis of the item of property less depreciation. Freetaxusa2012 See Publication 551. Freetaxusa2012 Multiple property account. Freetaxusa2012 For a normal retirement from a multiple property account, if you figured depreciation using the average expected useful life, the adjusted basis is the salvage value estimated for the item of property when it was originally acquired. Freetaxusa2012 If you figured depreciation using the maximum expected useful life of the longest lived item of property in the account, you must use the depreciation method used for the multiple property account and a rate based on the maximum expected useful life of the item of property retired. Freetaxusa2012 You make the adjustment for depreciation for an abnormal retirement from a multiple property account at the rate that would be proper if the item of property was depreciated in a single property account. Freetaxusa2012 The method of depreciation used for the multiple property account is used. Freetaxusa2012 You base the rate on either the average expected useful life or the maximum expected useful life of the retired item of property, depending on the method used to determine the depreciation rate for the multiple property account. Freetaxusa2012 Prev Up Next Home More Online Publications