schirallicpa Posted February 17, 2017 Report Share Posted February 17, 2017 And Sec 179 not used, for that matter. Client has significant NOL that I believe he can continue to carry. (Wasn't that Trump's method of avoiding tax?) But does it matter what type of bankruptcy they use? And should I maximize 179 and let that carry forward? That doesn't seem right at all since he will be abandoning the property and allowing the bank to take it back. Including equipment that he just purchased this past year. But, if NOL stays, can 179? Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 17, 2017 Report Share Posted February 17, 2017 It's been awhile since I've done one, but the gist is that tax attributes (loss carryovers, asset basis, etc.) are reduced by the amount of debt cancelled in a bankruptcy. See for 982. 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted February 17, 2017 Report Share Posted February 17, 2017 Re: the 179, you can't create a loss with it, and you don't take depreciation at all on an asset that is bought & sold in the same year. I think your client wouldn't take any depreciation against that which is abandoned. 1 Quote Link to comment Share on other sites More sharing options...
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