Client started a bus in 2003 and we filed an 8829. Bus showed a loss in 03 and 04, and 8829 operating expenses and depr were carried forward. Can we still file the Sch. C and drop the 8829 and amounts carried forward ($560)? (Bus is not what he had hoped and he doesn't meet the regular use test anymore.) Client is thinking of selling home in 3 - 5 yrs. Will the 560 affect the sale even tho it was never actually deducted??
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drop 8829?
I asked a similar question a few days ago. My client had OIH deductions for 2003 and 2004 and then sold home in 2005. The depreciation had been carried forward and never used.
The thread is titled "Sale of OIH" and it is on the 4th page back, if you want to go back and read the posts there.
Linda F -
You can drop the 8829 carryforward and when he sells the home the depreciation does NOT have to be recaptured as it was never allowed or deducted, therefore, it will not affect the sale of the home.Comment
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