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No Depreciation Schedules

by TaxMama on February 24, 2010

Today TaxMama hears from Enrolled Agent Alison Jacks in  San Francisco who brings up an important issue. “What do you think of the fact that many (dare I say most?) tax professionals do not seem to provide depreciation schedules with the taxpayer’s copy of the tax return? I pretty much blew a fuse yesterday and posted my frustration on my website ( www.familychildcaretaxes.com ) when another new client came in with a prior year tax return without any schedules documenting her carryover business depreciation.

I don’t get it, do you? Isn’t it easier to give the client all of their tax information at the time the tax return is prepared, rather than digging it up later when they ask you for it? I think it is unethical, even, to withhold this information. The taxpayer doesn’t know that they need it, but the tax preparer sure should.  This is bothering me so much, that I thought I would get your take. Am I overreacting?”  http://taxmama.com/forum/taxquips/lack-of-depreciation-schedules/

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Renting Bounce Castles

February 3, 2010

Today TaxMama hears from Shaunna in Washington State, who tells us. “I own a small rental business. Is the bounce castle I rent out considered an asset or inventory?”

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Franchise Costs

December 23, 2009

Today TaxMama hears from Bill in North Carolina, with this question. “What is the tax treatment of equipment that is included in the payment of franchise fee? Is it all considered amortizable start-up cost? Or is the equipment depreciated separately starting with the day it opens for business? I am concerned about local business property [...]

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Depreciation Catch Up

September 16, 2009

Today TaxMama hears from Betty in Arizona, with this question. “ I realized that I didn’t deduct depreciation at all in my past 8 years tax returns. So I will use Form 3115 to capture all the depreciation. But this will create a big loss on Schedule E. Is this loss limited by Form 8582 [...]

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Leasehold Improvements

March 19, 2009

Today TaxMama hears from David in New York with this sensible question. “I have leasehold improvements in a warehouse I rent. The lease is five years. May I depreciate the leasehold improvements over the life of the lease, or five years? Next year, may I depreciate the improvements over the remaining life, or four years?”

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Land vs Building

March 18, 2009

Today TaxMama hears from Tom in Pasadena, CA who tells us, “I am a hair stylist and I am going to start working exclusively out of my home. I will have 2 rooms of my townhouse used solely for business. When I take the depreciation for the business use of my home do I need [...]

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Rental Property

December 8, 2008

Today TaxMama hears from Sue in Nevada with a couple of questions. “I inherited rental property and must prepare for the 2008 tax return. Do I use fair market value as the cost basis in figuring the depreciation? Also, how do I calculate depreciation?”

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HOA Income

October 20, 2008

Today TaxMama hears from Jan in Washington State who tells us. “I am on the board of a Homeowners Association. We take in about $20,000 and our expenses are $14,000 leaving $6,000 to go for future road maintenance. We also earn about $1,500 in interest. Can we deduct depreciation for our [...]

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Selling Building

August 12, 2008

Today TaxMama hears from Oscar in Michigan who says, “I have a friend who wants to sell a commercial building that has been fully depreciated. She and her husband were co-owners of the building. Her husband died in 2001 when the building was appraised at $400,000.00. She is of the opinion that the appraised value [...]

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Writing off Software

July 29, 2008

Today TaxMama hears from Rodney in Texas who asks. “How do you determine the difference between a deduction that you can take in full in the year of purchase vs the deduction that is spread over many years? I am trying to relate this to software because some software is used without changing for [...]

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