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Subject Author Date
Basis reduction for 1/2 Investment Tax Credit Bill Silbernagel 02-14-2007
Posted by Bill Silbernagel on February 14, 2007, 9:41 pm
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 I am writing off an old asset that was capitalized in 1984,
back when the investment credit was calculated, and the
basis reduced by one-half the ITC. I am now writing the
asset off the books. Would it be correct to write off the
one-half basis adjustment against retained earnings and make
it an M-1 item? Or, can I take a loss for the remaining
basis?

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Posted by Harlan Lunsford on February 17, 2007, 4:58 am
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 Bill Silbernagel wrote:

> I am writing off an old asset that was capitalized in 1984,
> back when the investment credit was calculated, and the
> basis reduced by one-half the ITC. I am now writing the
> asset off the books. Would it be correct to write off the
> one-half basis adjustment against retained earnings and make
> it an M-1 item? Or, can I take a loss for the remaining
> basis?

Remaining basis on a 1984 assets? What might that be?

ChEAr$,
Harlan Lunsford, EA n LA
(who remembers the old ITC fondly.)

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Benjamin Yazersky CPA on February 17, 2007, 4:58 am
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> I am writing off an old asset that was capitalized in 1984,
> back when the investment credit was calculated, and the
> basis reduced by one-half the ITC. I am now writing the
> asset off the books. Would it be correct to write off the
> one-half basis adjustment against retained earnings and make
> it an M-1 item? Or, can I take a loss for the remaining
> basis?

you cannot take a loss for something you received a inv tax
credit for

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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