I need a clarification. TP bought truck from leasing co when lease ran out about 20k about 6 years ago. TP did use in business of trucking. TP never put on depreciation and now sold truck. Truck is one of those tractor trailer trucks.(5 year life for depreciation) Is it possible to pu all that depreciation in 1 year on sch C. Then sell the truck on 4797? Would I have to file the 3115 form as well?
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If mileage was taken in the years it was a lease then depreciation was accounted for in the return.
The amount paid at end of lease is the basis to the TP for sale purposes. No 3115, just the sale form.Believe nothing you have not personally researched and verified. -
Assuming that he did not use the Standard Mileage Rate, yes, you need to file 3115 to 'catch up' on the missed depreciation.
Then the "481(a) adjustment" goes on Schedule C (probably as an "other expense"), then it can be sold on 4797.
Also, an over-the-road tractor unit (Asset class 00.26) has a 3 year depreciable life. The trailer itself is 5 years.
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Yes I did realize truck like this is 3 years. Fingers just got happy and hit post b4 I fixed it. Thanks to all.Comment
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