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Posted by L K Williams on April 15, 2006, 2:08 am
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> Seth Breidbart wrote:
>>> Publication 946 says that abandoned property just stops
>>> depreciating, even if the cost hasn't been fully recovered.
>>> So presumably you're saying we just loose the deduction.
>> If you abandon the property, that's like selling it for $0.
>>
>> Suppose at the end of the lease the book (depreciated) value
>> is $10,000. You have an immediate writeoff of $10,000.
> Another quick question. Does that final write-off appear on
> the line for depreciation (going, say, from $2K one year to
> $10K the next) or does one write it off as a casualty loss?
> If the former, is it wise to attach a note to explain it, or
> is the IRS used to wild fluctuations in depreciation?
There is no reason to attach an explanation. Such
statements get filed with the physical return and are never
read by anyone.
In addition, IRS does not routinely make year-to-year
comparisons on individual returns. So, when a screener
looks at your return he/she does not know what your
deduction was for the previous year. Thus, they would not
be aware of any fluctuation.
Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans
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