Closing schedule C business

[chenschuh]

Client decided to close his schedule C business. All assets on depreciation sheet are not going to be sold, he is going to convert assets to personal use. If I put date of deposition as 12/31/23 with 0 sale price. Then schedule C, line 13 amount greatly reduced, compare to the amount on line 13 that  I left date of disposition empty.

Is that because when I put 12/31/23 as date of deposition, depreciation only calcuated for half a year? 

[Just-Lisa-Now-]

You didnt dispose of them for 0, you just took them out of service, so just enter a date, with no sales price.

[chenschuh]

Once you put date of disposition there, doesn't matter you put 0 as sale price or not, the results are the same.

Just want to understand the reason why depreciation amount reduced when you put date of disposition there, depreciation amound reduced.

[sjrcpa]

When you dispose of depreciable assets, you get 1/2 year's worth of the otherwise allowable depreciation, unless the midquarter convention applies.

MACRS 101