Fixtures were purchased in 2011 and never depreciated. Sold in 2020. Using ProSeries assets worksheet, I completed the Asset Information, asset type E1 Office furniture / fixtures I entered zero for prior year depreciation. I completed Dispositions. I don't see "Allowable depreciation", form 4797 (e) is blank, how do I fix this?
More details:
Purchase price was $15,000, sale price $7,829 sold June 22, 2020.
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What exactly were these "fixtures"? "Fixtures" is usually different than "office furniture".
In the space for "prior depreciation", enter the amount of depreciation that SHOULD have been claimed.
File Form 3115 to 'catch up' on the missed depreciation.
You sure they didnt expense them back in 2011? I find it hard to believe they missed out including a 15k purchase.
Yeah, Vegas has put the odds quite high they were expensed instead of capitalized. Which would mean they are in fact fully depreciated.
These are glass display cases and other stuff in a retail store. Business had to close due to COVID. They sold what they can before turning the key to the landlord.
Hi Lisa - I am back on this return again. What if they expensed them? How will they be treated then?
As fully depreciated.
"What if they expensed them? How will they be treated then?"
The sale allocation to the items sold is generically part of income, now.
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