(1) Trended depreciation schedules of four, five, and ten years have been established for each category of property. The number of years correspond to the useful life of the property taking into account physical obsolescence. The trended depreciation schedules reflect the remaining life of the property over the term of years assigned with a 5% to 20% residual. The five- and ten-year depreciation schedules "% good" numbers were extracted from the Marshall and Swift Publication, "Fixtures and Equipment Table." The four-year table was derived from consultation with industry representatives. "Remaining Life" is a form of depreciation.

(2) The trended depreciation schedules for tax year 2009 are listed below. The categories are explained in ARM 42.21.156. The trend factors are derived according to ARM 42.21.156 and 42.21.157.  

 

CATEGORY 1

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2008	70%	1.000	70%
2007	45%	0.851	38%
2006	20%	0.810	16%
2005 and older	10%	0.773	8%

 

CATEGORY 2

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2008	85%	1.000	85%
2007	69%	1.022	71%
2006	52%	1.016	53%
2005	34%	1.022	35%
2004 and older	20%	1.034	21%

  

 

CATEGORY 3

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2008	85%	1.000	85%
2007	69%	0.905	62%
2006	52%	0.908	47%
2005	34%	0.897	30%
2004 and older	20%	0.878	18%

 

CATEGORY 4

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2008	85%	1.000	85%
2007	69%	0.977	67%
2006	52%	0.966	50%
2005	34%	0.953	32%
2004 and older	20%	0.925	19%

 

CATEGORY 5

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2008	85%	1.000	85%
2007	69%	1.014	70%
2006	52%	1.034	54%
2005	34%	1.062	36%
2004 and older	20%	1.088	22%

 

CATEGORY 6

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2008	85%	1.000	85%
2007	69%	1.022	71%
2006	52%	1.058	55%
2005	34%	1.129	38%
2004 and older	20%	1.177	24%

 

CATEGORY 7

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2008	92%	1.000	92%
2007	84%	1.018	86%
2006	76%	1.040	79%
2005	67%	1.072	72%
2004	58%	1.100	64%
2003	49%	1.105	54%
2002	39%	1.103	43%
2001	30%	1.104	33%
2000	24%	1.115	27%
1999 and older	20%	1.124	22%

 

CATEGORY 8

YEAR NEW/		TREND	TRENDED
ACQUIRED	% GOOD	FACTOR	% GOOD
2008	92%	1.000	92%
2007	84%	1.021	86%
2006	76%	1.050	80%
2005	67%	1.084	73%
2004	58%	1.125	65%
2003	49%	1.134	56%
2002	39%	1.145	45%
2001	30%	1.152	35%
2000	24%	1.165	28%
1999 and older	20%	1.179	24%

 

(3) This rule is effective for tax years beginning after December 31, 2008.