Social Security benefits may be tax free or includible in gross income at 50% or 85%. This depends on a couple’s income, Social Security benefits, and tax-exempt interest. The fact that the benefits are payable to a third party does not change the tax result; the Social Security checks are being used for the taxpayer’s benefit.
The estimated value of an asset at the end of its useful life. Salvage value is ignored by ACRS and MACRS rules.