Episode

Enrolled Agent Exam [Part 2] 39, Depreciation Basics — Useful Life and Method

Podcast
Finance Exam Prep
Published
Jun 5, 2026
Duration seconds
221
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https://open-exam-prep.com/
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https://episodes.captivate.fm/episode/56ba8c40-4979-48a1-b809-d19bde26ce8a.mp3
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Summary

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: - For tax purposes, an asset's useful life is its IRS-mandated recovery period, not its actual economic life. - The Modified Accelerated Cost Recovery System (MACRS) is the primary method for depreciating most business and investment property. - The General Depreciation System (GDS) is the default under MACRS and uses accelerated methods for faster cost recovery. - The Alternative Depreciation System (ADS) uses the straight-line method over a longer period and is mandatory in specific situations. - A common exam trap is using the financial accounting useful life instead of the correct tax recovery period provided in a question. 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