ataloma
Level 2
‎04-29-2020 06:59 PM
Leasehold improvements has cost of $19,000 and accumulated depreciation of  $11,000. Also where do I put the accumulated depreciation in Form 4797? Balance should be ordinary loss, right? Thanks for your reply.
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BobKamman
Level 15
‎04-30-2020 04:12 AM

Form 4797 Instructions:  Deduct the loss from a qualifying abandonment of business or investment property on line 10. 

George4Tacks
Level 15
‎04-30-2020 09:04 AM

Income > Dispositions > Schedule D... > Enter purch date, sale date, sale price, original cost

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In small faint print across the top white section, select Sale of Asset 4797,...

Enter the depreciation and code section of prop and no 1099B

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This will all end up on 4797


Answers are easy. Questions are hard!

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ataloma
Level 2
‎04-30-2020 09:36 AM

Thanks for your reply! The info was reported on Form 4797, line 2, Part I, and the loss is carried over to Line 11. I think that's right. The loss did not show on Line 10.

ataloma
Level 2
‎04-30-2020 09:40 AM

Thanks a lot! Very detailed.

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ataloma
Level 2
‎04-30-2020 09:54 AM

When business closed various equipment were either abandoned in the store or not working and were fully depreciated. Do I need to report in Form 4797 with $30,000 costs, $30,000 accumulated depreciation and zero gain/loss? Can I just group the assets in one amount instead of listing 5 assets?

When business closed should I show ending inventory as zero and inventory kept by owner should reduce purchases. How about if there were no more purchases because the business decided to close, can I have a negative purchases shown in the tax return?

Thanks.

 

 

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