Iowa Court of Appeals holds that straight line depreciation of equipment should be used when calculating a self employed parties' income

June 29th, 2013

In a June of 2013, decision the Iowa Court of Appeals again upheld the use of straight line depreciation of equipment when calculating a self-employed parties' income for child support purposes. In In re the Marriage of Brauns, the father operated an excavation business, which used heavy machinery. He argued that the court should use an accelerated depreciation schedule when calculating his income for child support purposes. However, the trial court sided with his wife and used a straight line depreciation schedule. The father then raised the issue on appeal and lost. In reaching the decision to use the straight line depreciation schedule the court reasoned that said method strikes the proper balance between planning for the continued success of the business and providing the proper level of care for the children.