Announcement

Collapse
No announcement yet.

Sch C - Short tax year

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Sch C - Short tax year

    If a person purchased a business in Oct and was a sole proprietor, would you have to figure depreciation as a short tax year? Everything I read says partnerships, corporations and estates must use short tax year. No mention of sole proprietors.

    Thanks. Linda

    #2
    sole proprietorship purchased a business

    No, you do not have a "Short Tax Year" with a sole proprietorship. When you say the person purchased a business... I figure you're saying that she bought the assets of the business. If so and if that person did not have any other on-going business before the purchase in October, then the purchase of all these assets in October will cause taxpayer to use MQ convention for the purchases. So, only 1.5 months depreciation will be deductible in 2005, plus any amounts of Sec 179.

    Bill

    Comment


      #3
      Thanks

      Bill. That is what I thought and what I did. But then I started second guessing myself.

      Thanks.

      Linda F

      Comment


        #4
        Originally posted by Linda F
        If a person purchased a business in Oct and was a sole proprietor, would you have to figure depreciation as a short tax year? Everything I read says partnerships, corporations and estates must use short tax year. No mention of sole proprietors.

        Thanks. Linda
        Hey Linda

        Here is where the software comes in. All I have to do is enter the assets with the date put in service and it does it all, unless you are doing a manual return.
        You can then go back and check it manually.It works like a charm
        Everybody should pay his income tax with a smile. I tried it, but they wanted cash

        Comment


          #5
          I did that

          when I did the return but I had a partnership that started in the middle of the year this year also and had to do a short tax year calculation for their depreciation. So I just was checking to make sure my Schedule C for this person was right.

          Thanks

          Linda F

          Comment


            #6
            Which software

            Originally posted by BRIAN
            Here is where the software comes in. All I have to do is enter the assets with the date put in service and it does it all, unless you are doing a manual return.
            You can then go back and check it manually.It works like a charm
            Brian,

            Sounds like the software you're using automatically determines that MQ has to be used instead of HY??? Which software do you use? ATX does not do this for me.

            Bill

            Comment


              #7
              wouldn't the software figure that too?

              I just put in the date the partnership, corp, etc. began and the in service date for the asset and roll with it. Isn't that why I pay for the software, so I don't have to figure things like that out?

              Maybe I'm wrong, but I thought the software would take care of all that!

              Comment


                #8
                Drake is what I use.

                Never had an issue, at least that I know of. But, read my above post.

                Comment


                  #9
                  Originally posted by Bill Tubbs
                  Brian,

                  Sounds like the software you're using automatically determines that MQ has to be used instead of HY??? Which software do you use? ATX does not do this for me.

                  Bill
                  Hey Bill

                  Drake is what I use and it does it all.
                  Everybody should pay his income tax with a smile. I tried it, but they wanted cash

                  Comment


                    #10
                    Thanks.

                    Originally posted by BRIAN
                    Drake is what I use and it does it all.
                    Thanks Brian (and JoshinNC).

                    Last time I looked at Drake though, I think it was out of my budget

                    Bill

                    Comment


                      #11
                      Originally posted by Bill Tubbs
                      Thanks Brian (and JoshinNC).

                      Last time I looked at Drake though, I think it was out of my budget

                      Bill
                      Hey Bill,

                      I do not know how many returns you do; however they different plans. For first timers you can use the Pay Per Return plan. You buy the first 50 returns for $500 and then each additional return cost $10. On your second year you buy the entire package for $995. It is unlimited and includes 1040, All state returns, 1120 1065 990 1041 etc. There is no additional charge for EF. The software must be purchased before may 31 to get the 995 price.
                      Good Luck
                      Everybody should pay his income tax with a smile. I tried it, but they wanted cash

                      Comment


                        #12
                        Drake prices...

                        Originally posted by BRIAN
                        Hey Bill,

                        I do not know how many returns you do; however they different plans. For first timers you can use the Pay Per Return plan. You buy the first 50 returns for $500 and then each additional return cost $10. On your second year you buy the entire package for $995. It is unlimited and includes 1040, All state returns, 1120 1065 990 1041 etc. There is no additional charge for EF. The software must be purchased before may 31 to get the 995 price.
                        Good Luck

                        Well, last year I show about 130 1040's plus a one 1120s and one 1065. Hopefully this year I'll end up with at least 160 1040's plus the two 1120s and one 1065, for which I paid $700 or so for. Maybe this off-season will have to look at prices and demos...

                        Thanks,
                        Bill

                        Comment

                        Working...
                        X