Year to Switch to Straight Line Depreciation.

Abstract The article reports that the provisions of the Internal Revenue Code of 1954 with regard to depreciation is the permitted switch from a declining balance method to the straight line method. The calculations of the deductions in each year are made clear in accounting texts by specific examples. The problem of switching for group properties is treated in a article published in the periodical "The Accounting Review." An interesting result of the calculations is that for a useful life of up to 60 years it is never profitable to switch from double declining balance if salvage is as much as 15% of depreciable cost. Similarly, if the taxpayer starts on the 150% declining balance method for life up to 60 years he would never switch if salvage is 25% or more.