Level 7

Solved

How do I report no depreciation for idle equipment?

Forum|Forum|5 years ago
September 15, 2020
6 replies
64 views

Client did not operate a segment of their business last year. How do I report no depreciation due to idle equipment?

Thanks.

ProSeries Professional

This topic has been closed for replies.

Best answer by IRonMaN

In the asset entry worksheet, enter a date of sale but leave the box open for the sales price.

dkh

Level 15

I go into the Asset Entry Worksheet and override current year depreciation.

IRonMaNAnswer

Level 15

In the asset entry worksheet, enter a date of sale but leave the box open for the sales price.

Slava Ukraini!

D

david3Author

Level 7

Thanks for your help.

DKH, will I be able to e-file if I override the depreciation numbers? It seems as though anytime I override anything I get e-file errors.

IronMan, I was thinking of doing that but then those assets won't show up next year, will they? I guess the alternative is to re-enter the assets in 2020. Or is there another option next year?

Thanks.

dkh

Level 15

Should get a warning message there's an override when e-filing but can choose to continue with efiling transmission.

rbynaker

Level 13

If it's temporarily idle you continue depreciation. See IRS Pub 946 (2019) page 7 column 2:

https://www.irs.gov/pub/irs-pdf/p946.pdf

Idle Property
Continue to claim a deduction for depreciation on property
used in your business or for the production of income
even if it is temporarily idle (not in use). For example, if
you stop using a machine because there is a temporary
lack of a market for a product made with that machine,
continue to deduct depreciation on the machine.

Rick

D

david3Author

Level 7

Thanks, Rick.

The business is winding down and only subletted rent to an existing business next door during 2019 - no business activity in 2019.

I found out that all the equipment was destroyed in a fire this year.

Thanks.

Sign up

Login with SSO

Let's get you signed in

Login with SSO