Recapture

[DTS]

Client has had a business for years. He decided to not work in this business at all in 2005, but will pick up this same business activity again in mid-2006. All depreciated property is waiting to be put back into use in a couple of months. Also, client still accesses and refers to all computer data. No personal use of any equipment.

I feel that business use has not fallen to below 50% just because it's temporarily in hiatus. Am I correct in my thinking?

Thank you, Dennis

[Gretel]

Idle Property

Dennis, look at TTB 9-20. Idle property continues to be depreciated.

Also, there was a thread some time earlier on this subject.

[DTS]

Gabriele

Thanks. I did go into the recapture section, but obviously, not enough. I will check it out further when I get to the office tomorrow.
Dennis

[Ken]

depreciation

The other poster is right on. Depreciation continues on even though there is no activity in the business for a year. You cant pick and choose when and what years to start and stop depreciation.