short year deprection

[grandmabee]

a sole prop purchses business November 1st. Atx does not have short year and you have to over ride. How many of you use short tax year for a Sch C or do you just use for Corp.?

Thanks

[mcb39]

Line H of the Schedule C asks if you started or acquired this busienss during 2009 and there is a check box. That is all they ask for. Line G is the Did you "mateially participate in the operation. I guess I am wondering what you are overriding. His income and expenses are only whatever the books say they are from Nov 1 to Dec 31. For depreciation, it asks for the date placed in service, which will then automatically figure the depreciation for the short year.

[grandmabee]

Line H of the Schedule C asks if you started or acquired this busienss during 2009 and there is a check box. That is all they ask for. Line G is the Did you "mateially participate in the operation. I guess I am wondering what you are overriding. His income and expenses are only whatever the books say they are from Nov 1 to Dec 31. For depreciation, it asks for the date placed in service, which will then automatically figure the depreciation for the short year.

No ATX does not calulate short year depreciation for Sch C. only corps It says in instruction if you want to use short year you must over ride

[mcb39]

Go to Global Settings at the bottom of the Asset Entry page. There is a box to check for short year.

[jainen]

>>use short tax year for a Sch C<<

A sole proprietorship is not a separate entity. Virtually all individuals file on a calendar year, so there is no such thing as a short year. Use mid-quarter convention in the ordinary way.

It is technically possible that an individual could hold assets subject to a short-year depreciation schedule, if they were converted from a corporate entity.