tax implications of replacing equipment that still has value

Forum|Forum|6 years ago
July 4, 2020
5 replies
22 views

Client files schedule C for his business. He is replacing some equipment that is not fully depreciated. How do I handle this?

ProSeries Professional

This topic has been closed for replies.

Best answer by TaxGuyBill

If it is junked, enter a $0 sale price. If it is given away, enter the disposition date and leave the sales price BLANK to stop the depreciation (you don't get to claim a loss if it is gifted away).

Just-Lisa-Now-

Intuit Community Champion

Disposal of what he has, purchase of what he buys.

Whats he doing with the old equipment?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

L

lindadod0626Author

Level 3

He's not selling it. he is either junking it or giving it away, usually to one of his wife's students.

When he buys something new now, I have started asking him about how long he thinks it will last so I can expense at least part of it via 179. Graphic designers have to stay really up to date on hardware; no computer lasts five years with that kind of use.

T

TaxGuyBillAnswer

If it is junked, enter a $0 sale price. If it is given away, enter the disposition date and leave the sales price BLANK to stop the depreciation (you don't get to claim a loss if it is gifted away).

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