Detail Items - S. 179

[Corduroy Frog]

It is to a client's advantage to take s. 179 on SOME, but not ALL, of his new equipment. He can elect to do so.

Going forward, imagine he has a depreciation schedule of 10 items purchased in 2012. (He keeps this but is not required to submit to IRS with his tax return)

How should he record his depreciation among the 10 items? Does he have a choice?

Which of the following is true??

1) He can record three items as fully depreciated, and the other 7 items with MACRS lives and rates.
2) He must prorate the s.179 amount and spread over ALL 10 of the new items.
3) He can allocate the s.179 amount in any manner he wishes.
4) Since his detail asset listing is not submitted with his 4562, he can change his mind in a later year, so long as depreciation as reported in all years is unchanged.

[JoshinNC]

1

It is to a client's advantage to take s. 179 on SOME, but not ALL, of his new equipment. He can elect to do so.

Going forward, imagine he has a depreciation schedule of 10 items purchased in 2012. (He keeps this but is not required to submit to IRS with his tax return)

How should he record his depreciation among the 10 items? Does he have a choice?

Which of the following is true??

1) He can record three items as fully depreciated, and the other 7 items with MACRS lives and rates.
2) He must prorate the s.179 amount and spread over ALL 10 of the new items.
3) He can allocate the s.179 amount in any manner he wishes.
4) Since his detail asset listing is not submitted with his 4562, he can change his mind in a later year, so long as depreciation as reported in all years is unchanged.

is my answer

[Traveling EA]

Sec 179

Is this for a client or a test question??

[Corduroy Frog]

Multiple Choice

Looks like another Cheesehead joins!! Went to a seminar in Eau Claire last year - really enjoy Wisconsin!

The answer(s) would be the same whether a real client or a "test question."

To respond to your question, this is a real client.

But I am notorious for posing questions as multiple choice, and have my reasons. It keeps peoples' minds on the subject and if the original question isn't clear sometimes it will become clear when given multiple choices. It almost always boils the answer down to a specific rather than vague generalities. And since it is I who is asking the questions, I can pose them in a manner that keeps the subject on topic. One of the problems we have is someone will pose a question and the respondents will spout off volumes of information without ever answering the original question. Check out a few of our discussion threads and you will confirm this to be true.

For this particular "multiple choice" - I really don't know the answer and would appreciate responses. Only one choice may be true, or sometimes more than one choice may be true, or sometimes NONE of the choices may be true. The respondant is also welcome to add another choice such as "None of the above."

[Burke]

My answers:

1. True.
2. False.
3. Also true, assuming you mean he does not exceed the gross limitations. He can elect 179 for part of an asset, and depreciate the rest under MACRS.
4. True. Depr methods can be changed in future years, Form 2115(?). Also, 179 can be elected or de-elected on an amended return.

[Traveling EA]

Cheesehead???

Looks like another Cheesehead joins!! Went to a seminar in Eau Claire last year - really enjoy Wisconsin!

The answer(s) would be the same whether a real client or a "test question."

To respond to your question, this is a real client.

But I am notorious for posing questions as multiple choice, and have my reasons. It keeps peoples' minds on the subject and if the original question isn't clear sometimes it will become clear when given multiple choices. It almost always boils the answer down to a specific rather than vague generalities. And since it is I who is asking the questions, I can pose them in a manner that keeps the subject on topic. One of the problems we have is someone will pose a question and the respondents will spout off volumes of information without ever answering the original question. Check out a few of our discussion threads and you will confirm this to be true.

For this particular "multiple choice" - I really don't know the answer and would appreciate responses. Only one choice may be true, or sometimes more than one choice may be true, or sometimes NONE of the choices may be true. The respondant is also welcome to add another choice such as "None of the above."

That is an insult to call me a cheesehead. Just because I currently live in WI does not make me a cheeshead. I am an import to the state.

[Snaggletooth]

Cheeseheads

If you live in Wisconsin and are not a Packer fan, better not advertise it. Cheeseheads are everywhere.
So much cheese on their head that one guy called another guy a "Meathead" and he instantly became a pizza.

Who knows - you could be a Wolverine, a Hawkeye, a Golden Gopher or some other creature. Or maybe no football at all...

I was "imported" myself for a week, and loved every minute of it!