 GDS using 150 double declining. So this is for form 357, 10 year, all 15 and 20 year property, non-form 357 or 10 year property and form 357 or 10 year. So provides a greater deduction during the earlier recovery periods, greater than straight line, that is at least, and then it changes the straight line, same thing. And then you got the GDS using straight non-residential rental property and residential rental property, those large items, real estate and essence being depreciated over long periods of time, now not getting the benefit of the double declining wanting instead that straight line method. Trees are vines, bearing fruits, water, utility, all 357, 10, 15 and 20 year property. There's an appendix to that property for which you elected section 168 and it provides an equal yearly deduction. So that's just kind of a recap of it. And so our general rule, we'd like to get more upfront if we can, unless we have some reason other than to do that, in which case we might try to elect to go straight line if we have the option to do that. And that would only happen if we think, for example, we're gonna have more income in future years, which means we might get more tax benefit because our tax, our taxable income might be higher. And then you've got the ADS using the straight line. Okay, basis adjustments due to casualty loss. If you reduce the basis of your property because of a casualty, you cannot continue to use the percentage tables for the year of the adjustment and the remaining recovery period, you must figure the depreciation yourself using the property's adjusted basis at the end of the year. See figuring the deduction without using the tables later. Example, so on October 26, 2021, Sandra and Frank Elm calendar year taxpayers bought and placed in service in their business a new item of seven year property. It cost $39,000 and they elected section 179 deduction of $24,000. They also made an election under the 168K7 not to deduct the special depreciation allowance for seven year property placed in service in 2021. Their adjusted basis after the section 179 deduction was 15,000, which is the 39,000 minus the 27,000 of the 179. So they figured their maker's depreciation deduction using the percentage tables for 2021 the maker's depreciation deduction was $536. So in July, 2022, the property was vandalized and they had a deductible casualty loss of $3,000. So Sandra and Frank must adjust the property's basis for the casualty loss. So now they if there was a casualty loss related to a piece of property, you would expect that you'd be if you're going to expense it, then that you that you might need to decrease the basis because the for the for the property right at the same time so that you don't otherwise you'd be double dipping because you would have got the loss and you'd get the depreciation at some point in the future. So Sandra and Frank must adjust the property's basis for the casualty loss so they can no longer use the percentage what percentage of Hayden Panatier is dwarf tables their adjusted basis the end of 2022 before figuring the 2022 depreciation is 11,464. They figured that amount by subtracting the 2021 maker's depreciation of $536 and the casualty loss of $3,000 from the unadjusted basis of $15,000. They must now figure their depreciation for 2022 without the percentage tables. All right. So figuring the unadjusted basis of your property you must apply the table rates to your property properties unadjusted basis each year of the recovery period. So that's how the tables work. So the tables are going to be set up to give you kind of an easy number to multiply times the unadjusted basis otherwise doing this double decline in calculation becomes a little bit more complex because you got to kind of figure out like they book value each period to multiply times the double decline in rate and then figure if it's greater than the straight line and so on. So the tables are useful if you're trying to map out the whole depreciation for the whole time frame otherwise tax software is useful for the current year and possibly the future year as well. Unadjusted basis is the same basis amount you would use to figure gain on a sale but you figure it without reducing your original basis by any maker's depreciation taken in earlier years. However, you do reduce your original basis by other amounts including the following any amortization taken on the property any section 179 deduction claimed any special depreciation allowance taken on the property for business property you purchased during the year the adjusted basis is its cost minus these and other applicable adjustments so normal depreciation now if you're using the tables you've got to take the cost in essence times these rates on the table to figure out the proper depreciation but then you've got these funny things that happen in particular the 179 and the specials which allow you to get a lot of depreciation in essence or equivalent to depreciation write offs in the year of purchase which messes up the whole table thing so now you got to figure out your basis after these after these items and then basically use the tables if you can use the tables so if you trade property your adjusted basis is the property received in the cash paid plus the adjusted basis of the property traded minus these adjustments in my opinion I think the tables I would use tax software to help me calculate and then often use the tables possibly to double check that calculation and or to do projections out into the future and then you can kind of use the two software and the tables to see if everything's lining up properly between your projections and what's been calculated in the current year so maker's worksheet so you can use this worksheet to help you fake your your depreciation deduction using the percentage tables use a separate worksheet for each item of property then use the information from this worksheet to prepare for 4 5 6 2 so obviously if you did all this by hand it would be quite complex but it gives you an idea of what is happening and you want to you want to be able to explain what is happening if you're using software and possibly be able to do projections into the future so the worksheet you've got the maker's system gds or ads property class date placed in service recovery period method and convention depreciation rate off a lot of this stuff would be driven in essence by the type of property you're putting in place and and then the defaults that you would choose unless you were electing otherwise such as double declining balance unless you wanted to default to switch to straight line for whatever reason and then you got the cost or the basis that and then the base the basis divided by the investment use in other words if it's not all for business use some of it's for personal use then you'd have to multiply times the business use percent you multiply those lines out to get the business use that's now your basis total claimed for section 179 deduction that's that upfront deduction that you might be able to get which we're going to take out of the basis because you got an expense for it when calculating normal depreciation after that 179 special depreciation subtract line 10 from line 9 this is your tentative basis for depreciation and then 12 multiply line 11 by the applicable percentage in the special depreciation allowance applies this is your special depreciation allowance enter zero if this if this is not the year you place the property in service the property is not qualified property or you elected not to claim special depreciation again special depreciation weird kind of like the 179 that upfront kind of depreciation thing then subtract 12 from 11 this is your basis for depreciation so after getting past those funny depreciations up front the adjusted basis is now to the point where you can apply the normal depreciation kind of rules which is the maker's table if you're using the tables and then you got the depreciation rate which will give you the multiply that this is your maker's depreciation deduction okay example you bought office furniture it's seven-year property so you know it's seven-year property because it's office furniture and the iris says that's seven-year property so for $10,000 and placed it in service on august 11 2022 you use the furniture only for business so it's a business use you don't have to multiply at times the percentage of personal use or anything like that this is the only property you placed in service this year you did not elect the 179 deduction so we're going to take that off the table and the property is not qualified property for purposes of claiming a special depreciation allowance so we'll take that off the table so your property's unadjusted basis is its cost of $10,000 so we're just going to be dealing with maker's depreciation here not all this other funny business so you use gds and a half-year convention to figure your depreciation you refer to the maker's percentage table guide in appendix a and find that you should use table 1a multiply your properties unadjusted basis by uh basis each year by the percentage for seven-year property given in table 1a you figure your depreciation using the maker's worksheet as follows