2106 and depreciation

[ljwalters]

Client laid off March1 2008 from the company she worked for from home. W2 wages and filed 2106.

Here is question...

What do I do with the depriciable assets. I know to only take the 2 months of depreciation this year. Do I need to disposition or can I hold them in the return with 0 percentage. Reason... Client was told she could be rehired when things get better.

Remember this is a 2106 not Sch C.

Thanks

Linda and buddy

[mcb39]

Linda...in the drop down box for Asset Entry (Upper Left Hand Corner) you get to choose which schedule the depr goes to. The first entry choice is Sch A..... Or, alternately, on the 2106, there is a worksheet for entering depreciation for additions or improvements, but I really think that is for home office use. Try one of these methods. It is really amazing what can be found in the worksheets lists. B)

[ljwalters]

Marilyn

The assets are already assigned to the 2106. The trouble I'm having is getting 2 months depreciation without using the disposition option.

is this possible or do I need to dispose of the assets (convert to personal).

Linda

[mcb39]

Marilyn

The assets are already assigned to the 2106. The trouble I'm having is getting 2 months depreciation without using the disposition option.

is this possible or do I need to dispose of the assets (convert to personal).

Linda

Linda..I would convert to personal. If she has already been off work for 10 months, what are the odds that she will be called back. Print a depreciation schedule for her file just in case she puts them back into use. Then you can deduct the depreciation taken from the basis.

[kcjenkins]

Or if she really does expect to put them back into use, do not 'dispose of the asset at all. But given the situation, I'd probably choose the 'converted to personal use' option, being sure to put a copy of the asset info in the file, so that if she does go back to work for them, and start using them again, you know just what to put in to reestablish basis, etc.

[joanmcq]

Last year you could convert to personal, but not delete the assets when you roll over next year. That way they just hang out in the return until you fully dispose of them, like if you converted a rental to personal, but kept it on the books so the depreciation doesn't get lost. Or you have an ex that moves into a rental, then moves out and rents it again.....