I'm probably overthinking the topic and overlooking the answer. I'd like to put off some depreciation for following years but cannot for the life me figure out how. The client has a trucking business and has several repairs that we don't want to take depreciation this year but we would like the option in the next 3 to 5 years. How do i do this?
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There's a lot of things I don't want to do but I do what I'm obliged to do anyway.Originally posted by Elissa. Hines View Post
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Depreciate over the longest time available, even using ADS or SL. However, you do start depreciation in the year placed in service, so you can't skip the first year. I'm no expert, so do read up on depreciation options.Comment
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Review Sect 179. There is a multiple years delay if losses continue.
"Yes, you can claim Section 179. However, whether or not you can use the loss in the current year or if the Section 179 is carried to next year depends on the circumstances. If the business is a Partnership or Corporation, you can not use a loss with Section 179. If you claim Section 179, it will be carried to the next year."
You have to test in your program as officer payroll may effect the carryover 179.Last edited by BOB W; 04-05-2021, 08:22 AM.This post is for discussion purposes only and should be verified with other sources before actual use.
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Repairs are not depreciated, they must be deducted in the year incurred and paid. (usual proviso about cash vs accrual accounting).Originally posted by Elissa. Hines View Post
There might be some option under the tangible property regulations that allow capitalization of certain repairs, you 'd have to go read up on that.
To Bob W's comment, no one said there was a loss.
I also wish a welcome to the forum for the OP. I am curious when you say, "overthinking the topic and overlooking the answer." Have you seen some other situation where what you want to do was done? It's not something I have ever heard mentioned in any tax education or other discussions I've seen.
"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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Concerns about deductions is usually because either basis or losses. I can't think of any other reasons. Sect 179 carryover is a lesser know attribute. but I'm sure you knew about it.Originally posted by Rapid Robert View Post
Maybe the OP will chime back in with more info.This post is for discussion purposes only and should be verified with other sources before actual use.
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Yes, would like to hear back from OP about what the motivation is. It could have nothing to do with losses, maybe they are trying to show a higher income number in the current year to qualify for a loan or something. If the business is operating at a loss, I would think NOL would be the most straightforward way to "defer" the loss recognition.Originally posted by BOB W View Post
The way the question was phrased, "would like to have the option in the next 3 to 5 years" is what I was trying to say was very unusual.
"You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe HowardComment
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Leave it to you to think of another reason.. Good for you.Originally posted by Rapid Robert View PostThis post is for discussion purposes only and should be verified with other sources before actual use.
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