- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
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?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
You didnt dispose of them for 0, you just took them out of service, so just enter a date, with no sales price.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
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.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
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