UNDERWRITING DEPRECIATION FROM ASSET STEP-UP

Assuming that you are executing an asset-sale, which allows for a full step-up in value, what are the implications of this on how the depreciation is underwritten? For example, if you buy a blue-collar trade business (plumbing) for $1mm, and the company's main assets are vehicles, can you depreciate the entire $1mm dollars over a period, or do the standard limits for vehicle depreciation schedules still apply?

Please feel free to comment with recommended tax advisors!

Thanks!



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