Level 5

Question

Closing schedule C business

Forum|Forum|2 years ago
March 8, 2024
1 reply
8 views

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?

ProSeries Professional

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Intuit Community Champion

Intuit Community Champion

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

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chenschuhAuthor

Level 5

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.

Level 15

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

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