Welcome back! Ask questions, get answers, and join our large community of tax professionals.

Correct the flaw of basis being counted twice with a partial asset disposition

cancel
Showing results for 
Search instead for 
Did you mean: 

Correct the flaw of basis being counted twice with a partial asset disposition

luisnjen

When partially disposing of an asset, a new asset is created that has the remaining basis and the original asset is shown as being disposed of. This works; however, the original asset still shows the entire original basis. This is a problem because then part of the basis gets added to the total twice (one with the original asset that has the whole basis and once with the new asset that has the remaining basis), causing the total basis to be off which causes it to not match up with a few different documents that we work with. I realize that we can look at the next year depreciation schedule to see the correct basis total, but shouldn't the current year have the correct basis? When a partial disposition occurs, the original asset's basis should only show the amount of basis that is being disposed, so that the remaining basis isn't counted twice. This will allow the schedule to be cleaner in a couple different ways and make it easier to understand.

Status: New
0 Votes
Vote now if this is a good idea