1|Page
H&R BLOCK INCOME TAX
COURSE; WELL REVISED AND
COMPREHENSIVE EXAM WITH
COMPLETE AND CORRECT SET
OF Q&A 2025/2026 A+
estimated (useful) life -correct-answer-the period of time over which a depreciable
asset will be used by a particular taxpayer.
general depreciation system -correct-answer-the most commonly used macrs
system. personal property is depreciated using the declining-balance method
switching to straight-line when that method results in the larger deduction.
general straight-line depreciation system -correct-answer-a macrs system of
depreciation using the straight-line method over the normal macrs recovery period
for the asset.
listed property -correct-answer-listed property includes passenger autos and other
property used for transportation, property generally used for purposes of
entertainment, recreation, or amusement, computers not used exclusively at a
regular business establishment, and other property to be specified by the irs.
,2|Page
modified accelerated cost recovery system (macrs) -correct-answer-the
method of depreciation used for most depreciable assets placed in service after
1986. under macrs, assets of qualified property are written off over
predetermined periods.
personal property -correct-answer-generally, all property other than real estate.
real property -correct-answer-also known as real estate, includes land, buildings,
and their structural components.
section 179 expense deduction -correct-answer-an election to treat the cost of
certain qualified property as a currently deductible expense rather than as a capital
expenditure.
straight-line depreciation method -correct-answer-the most commonly used method
of depreciation prior to 1981. basis less salvage value or land value
divided by useful life equals depreciation deduction.
unadjusted basis -correct-answer-the basis of property for purposes of figuring
depreciation under acrs or macrs. the unadjusted basis is the original cost or
other basis.
,3|Page
to be depreciable, the property must be: -correct-answer-owned by the taxpayer; be
used in business or be income-producing; have a determinable useful life; be
expected to last longer than one year.
properties that are not depreciable -correct-answer-personal-use assets; assets with
an unlimited or indeterminable life; inventory or stock in trade.
macrs -correct-answer-the depreciation method generally used for most assets
placed in service after 1986.
two tables used to compute macrs depreciation deduction -correct-answer-
table of asset class lives and recovery periods;
modified accelerated cost recovery system percentage tables
eight classes of macrs property -correct-answer-3-year 5-
year
7-year
10-year
15-year
, 4|Page
20-year
25-year
50-year
the additional depreciation allowance (bonus depreciation) -correct-answer-a
special first-year depreciation bonus for qualified assets. the bonus is an
additional deduction for 30% or 50% of the unadjusted basis of the asset for
property acquired between sep. 10, 2001, and jan. 1, 2005.
how is residential real property depreciated? -correct-answer-such property
placed in service after 1986 is depreciated using a straight-line method over 27.5
years.
straight-line method -correct-answer-an equal amount of depreciation is claimed
each full year the asset is depreciated.
how is nonresidential real property depreciated? -correct-answer-such property
placed in service after may 13, 1993, is depreciated using the straight-line method
over 39 years. such property placed in service between 1986 and may 13, 1993 is
depreciated over 31.5 years.
H&R BLOCK INCOME TAX
COURSE; WELL REVISED AND
COMPREHENSIVE EXAM WITH
COMPLETE AND CORRECT SET
OF Q&A 2025/2026 A+
estimated (useful) life -correct-answer-the period of time over which a depreciable
asset will be used by a particular taxpayer.
general depreciation system -correct-answer-the most commonly used macrs
system. personal property is depreciated using the declining-balance method
switching to straight-line when that method results in the larger deduction.
general straight-line depreciation system -correct-answer-a macrs system of
depreciation using the straight-line method over the normal macrs recovery period
for the asset.
listed property -correct-answer-listed property includes passenger autos and other
property used for transportation, property generally used for purposes of
entertainment, recreation, or amusement, computers not used exclusively at a
regular business establishment, and other property to be specified by the irs.
,2|Page
modified accelerated cost recovery system (macrs) -correct-answer-the
method of depreciation used for most depreciable assets placed in service after
1986. under macrs, assets of qualified property are written off over
predetermined periods.
personal property -correct-answer-generally, all property other than real estate.
real property -correct-answer-also known as real estate, includes land, buildings,
and their structural components.
section 179 expense deduction -correct-answer-an election to treat the cost of
certain qualified property as a currently deductible expense rather than as a capital
expenditure.
straight-line depreciation method -correct-answer-the most commonly used method
of depreciation prior to 1981. basis less salvage value or land value
divided by useful life equals depreciation deduction.
unadjusted basis -correct-answer-the basis of property for purposes of figuring
depreciation under acrs or macrs. the unadjusted basis is the original cost or
other basis.
,3|Page
to be depreciable, the property must be: -correct-answer-owned by the taxpayer; be
used in business or be income-producing; have a determinable useful life; be
expected to last longer than one year.
properties that are not depreciable -correct-answer-personal-use assets; assets with
an unlimited or indeterminable life; inventory or stock in trade.
macrs -correct-answer-the depreciation method generally used for most assets
placed in service after 1986.
two tables used to compute macrs depreciation deduction -correct-answer-
table of asset class lives and recovery periods;
modified accelerated cost recovery system percentage tables
eight classes of macrs property -correct-answer-3-year 5-
year
7-year
10-year
15-year
, 4|Page
20-year
25-year
50-year
the additional depreciation allowance (bonus depreciation) -correct-answer-a
special first-year depreciation bonus for qualified assets. the bonus is an
additional deduction for 30% or 50% of the unadjusted basis of the asset for
property acquired between sep. 10, 2001, and jan. 1, 2005.
how is residential real property depreciated? -correct-answer-such property
placed in service after 1986 is depreciated using a straight-line method over 27.5
years.
straight-line method -correct-answer-an equal amount of depreciation is claimed
each full year the asset is depreciated.
how is nonresidential real property depreciated? -correct-answer-such property
placed in service after may 13, 1993, is depreciated using the straight-line method
over 39 years. such property placed in service between 1986 and may 13, 1993 is
depreciated over 31.5 years.
