2.2.1.4. Depreciation Application
Depreciation cannot be applied until after the asset is placed in service. Property is placed in service when it is ready and available for a specific use, whether or not it is currently being used. A business that purchases and receives a computer in December 2020 but doesn’t get it set up for use until January 2021 will not be able to begin depreciating the asset until 2021.
Example: Jacob buys a new tractor for his farm. He receives it in November 2019 but does not begin using it until spring. Depreciation begins in 2019, because it was ready and available for use at that tim
