I'm drawing a blank on how to handle this situation and hoping for some help. Sole proprietor owns a building and equipment used in salon business under schedule C for past few years. Partway through the year she switches from actively running the business (providing services and leasing out booth space) to only renting out the building and equipment so she can be a stay-at-home parent. It seems to me that the building and related assets need to move from schedule C to schedule E at the point when she stops being an active participant.
If so, there is no disposition or short-year depreciation since it is all held by an individual and not in a separate entity, etc., the depreciation just needs to be split proportionally between schedules C & E and carries on the same asset lives, etc.? Or am I missing something requiring a more complex situation?
Thanks for any clarity or confirmation.
If so, there is no disposition or short-year depreciation since it is all held by an individual and not in a separate entity, etc., the depreciation just needs to be split proportionally between schedules C & E and carries on the same asset lives, etc.? Or am I missing something requiring a more complex situation?
Thanks for any clarity or confirmation.
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