USA Useful life of emergency generator

[ppier]

I need to capitalize the cost of an emergency generator for my corporate building. It will sit on a concrete pad. Does the depreciable life of the building apply to the equipment because it is deemed a permanent fixture or can it be depreciated as normal equipment, say a 7 year life?
If the lesser life of the equipment applies, then does the concrete pad get wrapped in with the cost of the equipment or is it separately depreciated like a sidewalk (presuming the cost exceeds the asset threshold)?
My business is a nonprofit so tax considerations and accelerated depreciation are not relevant.

 

[kirby]

The generator is equipment. So the 7 year life is appropriate versus the life of the building.
If the cost of the concrete pad exceeds the asset threshold, recognize that it has a longer life and if you already have a life number for the life of the sidewalk, use that.

 

[Drmdcpa]

The generator can be segregated as machinery and equipment = 7 year life. If the concrete pad is part and parcel to the installation of the generator it is part of the cost of putting the generator into use, and thus part of the machinery. Otherwise the concrete pad should be considered a leasehold improvement.

In other words if the generator can be put into use without the concrete pad, but the concrete pad is a preference, this means the pad is not part of the generator. On the other hand, if the generator needs the pad to operate safely and efficiently, the pad is part and parcel to the generator system.