artp Posted February 17, 2023 Report Share Posted February 17, 2023 Taxpayer, cattle rancher, sold all of his cattle in 2022 and got out of the business. He has sheds and out buildings that were used in his business and still have undepreciated cost that he wants to write-off in 2022. My understanding is the fact that the taxpayer decided to cease business does not effect the useful life of the asset and he can not simply write-off the remaining cost. I am correct? or am I missing something? Comments Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted February 17, 2023 Report Share Posted February 17, 2023 It might depend on his future intentions. Does he plan on renting out the property? Does he have any other business that will use the buildings? Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 17, 2023 Report Share Posted February 17, 2023 They weren't disposed of. He still owns them. Nothing until a final disposition happens. You can use the ATX disposition code, 'removed for personal use,' to get the 2022 depreciation correct, BUT that will remove the asset from the fixed assets system and you'll lose track of the assets and the accumulated depreciation. What I like to do is, use that code 'removed for personal use' and note the depreciation amount. Then clear out the disposition tab, override the current depreciation, and leave myself a note for next year to set the business use % to zero, by entering 0.001 in the business use percentage screen. I do this because I want to keep the assets in the tax software. It's way too easy to forget about that old depreciation many years down the road. If only ATX had a 'removed from service' date field so this could be more easily handled. 4 Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted February 17, 2023 Report Share Posted February 17, 2023 18 minutes ago, Abby Normal said: I do this because I want to keep the assets in the tax software. It's way too easy to forget about that old depreciation many years down the road. If only ATX had a 'removed from service' date field so this could be more easily handled. That is one of the reason I keep most depreciation schedules on a separate program (EasyACCT) so I am not relying on ATX for permanent records. 1 Quote Link to comment Share on other sites More sharing options...
artp Posted February 17, 2023 Author Report Share Posted February 17, 2023 Thanks for the replies and suggestions. 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 17, 2023 Report Share Posted February 17, 2023 6 hours ago, DANRVAN said: That is one of the reason I keep most depreciation schedules on a separate program (EasyACCT) so I am not relying on ATX for permanent records. I prefer it all in one place, and I don't want to risk making a data entry error. Also, it's a lot more work to have a separate, non-integrated fixed assets system. 1 Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 17, 2023 Report Share Posted February 17, 2023 I used to maintain a separate system, but now I am using Drake whose depreciation system is a lot more user friendly than ATX. 1 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted February 23, 2023 Report Share Posted February 23, 2023 Because I am a "Paper Person", I keep a copy of the depreciation detail schedule in the client's file. 4 Quote Link to comment Share on other sites More sharing options...
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