Depreciation

[TAX]

Client is a scorp.

Purchased in 1995 equipment - Cost = 95,239
At the end of 2004 - accumualted Depreciation = $ 74,546 (Recovery 7 years, 200DB)

In 2005, & 2006 - No Depreciation - does it soung right?

Is this true that he can not take Depreciation because 7 years expired?

Thank you.

[veritas]

Should have ended in 2002

Was there an adjustment to basis for some type of credit? What kind of business and what kind of equipment?

[TAX]

It is o.k.

Was there an adjustment to basis for some type of credit? What kind of business and what kind of equipment?

Client is dentist. It was done wrong earlier. You are right. It shoud have ended in 2002.

Thanks!

[Luis Mopeo]

Client is dentist. It was done wrong earlier. You are right. It shoud have ended in 2002.

Thanks!

See TTB page 9-20. You can file Form 3115 to correct depreciation errors. The Rev. Procs. are massive, but if it's a large amount it might be worth it.