NAC363A.420. Health care deduction: Depreciation of property by self-insured employer.

If a self-insured employer claims the depreciation of property as a direct administrative services cost for purposes of the health care deduction, the employer must compute that depreciation for each calendar quarter, beginning with the calendar quarter in which the property is first placed into service, according to a straight-line method which is based upon:

     1. For tangible personal property other than a mobile home:

     (a) Ninety-five percent of the cost of acquisition of the property; and

     (b) A useful life determined in accordance with the Personal Property Manual adopted by the Commission for the period in which the property is first placed into service;

     2. For a mobile home which has not been converted to real property:

     (a) Eighty percent of the cost of acquisition of the mobile home; and

     (b) A useful life of 15 years; and

     3. For an improvement to real property:

     (a) Seventy-five percent of the cost of acquisition of the improvement; and

     (b) A useful life of 50 years.

     (Added to NAC by Tax Comm’n by R205-03, eff. 12-4-2003)