Depreciation Items from past year

Forum|Forum|2 years ago
April 12, 2024
1 reply
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If I began my business in 2023 but I purchased a brand new computer in 2020. Can I depreciate this item in 2023? Business use is now 100% for 2023 and obviously 0% for prior years. My thinking is this should be ok since I would lose the first 3 years of the 5 year depreciation window but curious what is correct in terms of depreciating items.

ProSeries Professional

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Best answer by rbynaker

When you convert an item from personal use to business use, you place it in service at the lower of cost basis or FMV at the time of the conversion. What's the fair market value of a 2020 computer? Maybe you can search the model number on ebay and find one for sale.

rbynakerAnswer

Level 13

When you convert an item from personal use to business use, you place it in service at the lower of cost basis or FMV at the time of the conversion. What's the fair market value of a 2020 computer? Maybe you can search the model number on ebay and find one for sale.