Enrolled Agent Exam [Part 2] 45, Alternative Depreciation System (ADS)

About this episode

This episode covers the Alternative Depreciation System (ADS) and its implications for property depreciation in tax scenarios.

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - When the Alternative Depreciation System (ADS) is mandatory for property such as foreign use and tax-exempt use property. - The consequences of a real property trade or business electing out of the Section 163(j) interest limitation. - How ADS utilizes the straight-line method over longer recovery periods compared to the General Depreciation System (GDS). - The rule that property depreciated under ADS is ineligible for bonus depreciation, a common exam trap. - The binding and irrevocable nature of an election to use ADS for a specific class of property for a given tax year. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

People in this episode

Host: Ran Chen

Topics covered

• Alternative Depreciation System
• depreciation methods
• tax implications
• real property
• certification exam preparation

Keywords

• depreciation
• ADS
• GDS
• tax-exempt property
• Section 163(j)
• bonus depreciation
• certification exam

Mentioned in this episode

Organizations: Open Exam Prep, YouTube

Products: Alternative Depreciation System (ADS), General Depreciation System (GDS)

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