Asset purchased /sold same year

[equinecpa]

I have always thought that if an asset is purchased and placed in use, then sold in the same year that no depreciation is allowable. I looked in TTB and on page 9-11 under excluded property it lists assets purchased and sold in the same year...

I'm doing a 1065 and my program (atx) IS calculating depreciation on these assets.

Am I missing something?

Carolyn

[equinecpa]

Interestingly enough as a test I opened a 1040 and added an asset and sold it in the same year -no depreciation was calculated. Does anyone know if this rule is different for partnerships?

Could I ask someone with a software other than ATX to add and sell a partnership asset in the same year and tell me if depreciation is calculated??

Thanks

Carolyn

[TAX4US]

depreciation

My opinion was that if it was personal property used in busines bought and sold same year, NO depreciation. Exception being real esate. Someone else my have a different take. However, doesn't mileage on a current year use contain some element of depreciation in it. Go figure?