1. (a) Except as provided in (b) of this section, a permittee shall depreciate assets used to conduct an activity permitted under AS 05.15, using the straight-line method over a period of five, 10, or 30 years. A permittee shall use a

   1. (1) five-year depreciation period for all personal property and computer software used in gaming activity;
   2. (2) 10-year depreciation period for an improvement that the permittee owns and uses in a gaming activity to leased real property; if the permittee does not own the improvements, no depreciation may be claimed under this section; and
   3. (3) 30-year depreciation period for real property that the permittee owns and uses in gaming activity.
2. (b) In lieu of depreciation, a permittee may expense the entire cost of an asset described in (a)(1) of this section in the year of purchase if expenses remain within the limits of AS 05.15.160.

(Eff. 7/30/94, Register 131; am 11/10/96, Register 140; am 1/1/2003, Register 164)

Authority: AS 05.15.060, AS 05.15.130, AS 05.15.160