OT Income tax help

Jim Bob · Oct 13, 2006

Ok so it is Oct and I am doing my income tax…a little late. I need to know if I buy some equipment in 2004 near the end of the year and the IRS wants to know when the equipment was placed in service should I put Jan 1st 2005, or would it be the day I bought the equipment even if it was in 2004. I did do some searches on the IRS web site but I have not found out anything about it. I think it looks funny if I have the start date of everything bought in the previous year, starting on the first day of the next year. Thanks for any help..

Jim Bob · Oct 13, 2006

Ok so it is Oct and I am doing my income tax…a little late. I need to know if I buy some equipment in 2004 near the end of the year and the IRS wants to know when the equipment was placed in service should I put Jan 1st 2005, or would it be the day I bought the equipment even if it was in 2004. I did do some searches on the IRS web site but I have not found out anything about it. I think it looks funny if I have the start date of everything bought in the previous year, starting on the first day of the next year. Thanks for any help..

Jim Bob · Oct 13, 2006

Ok so it is Oct and I am doing my income tax…a little late. I need to know if I buy some equipment in 2004 near the end of the year and the IRS wants to know when the equipment was placed in service should I put Jan 1st 2005, or would it be the day I bought the equipment even if it was in 2004. I did do some searches on the IRS web site but I have not found out anything about it. I think it looks funny if I have the start date of everything bought in the previous year, starting on the first day of the next year. Thanks for any help..

Panza · Oct 14, 2006

I don't know if it is the same in the US as in Norway, but here it is the date on the receipt that counts. Doesn't matter if you used it or not.

Panza · Oct 14, 2006

I don't know if it is the same in the US as in Norway, but here it is the date on the receipt that counts. Doesn't matter if you used it or not.

Panza · Oct 14, 2006

I don't know if it is the same in the US as in Norway, but here it is the date on the receipt that counts. Doesn't matter if you used it or not.

Gary E · Oct 14, 2006

Your doing a 04 tax return.
You bought equipment in 04

IF you want the deduction or depreciation for the 04 return, YOU GOT DELEVERY IN 04 and placed it in service in 04. YOU pick a date, in 04. Do you understand?

Gary E · Oct 14, 2006

Your doing a 04 tax return.
You bought equipment in 04

IF you want the deduction or depreciation for the 04 return, YOU GOT DELEVERY IN 04 and placed it in service in 04. YOU pick a date, in 04. Do you understand?

Gary E · Oct 14, 2006

Your doing a 04 tax return.
You bought equipment in 04

IF you want the deduction or depreciation for the 04 return, YOU GOT DELEVERY IN 04 and placed it in service in 04. YOU pick a date, in 04. Do you understand?

chriskat · Oct 14, 2006

Are you doing an '04 return or and '05 return? If you are doing the return for '05 how did you treat the purchase of the equipment when you did the '04 return?

Publication 946 at the following link:

Publication 946, see page 33

Defines the date an asset is put in service. For some reason I can't copy and paste the text.

Jeff

chriskat · Oct 14, 2006

Are you doing an '04 return or and '05 return? If you are doing the return for '05 how did you treat the purchase of the equipment when you did the '04 return?

Publication 946 at the following link:

Publication 946, see page 33

Defines the date an asset is put in service. For some reason I can't copy and paste the text.

Jeff

chriskat · Oct 14, 2006

Are you doing an '04 return or and '05 return? If you are doing the return for '05 how did you treat the purchase of the equipment when you did the '04 return?

Publication 946 at the following link:

Publication 946, see page 33

Defines the date an asset is put in service. For some reason I can't copy and paste the text.

Jeff

Jackmo · Oct 14, 2006

I think a tax expert would be a good idea in '06.

Jackmo

Jackmo · Oct 14, 2006

I think a tax expert would be a good idea in '06.

Jackmo

Jackmo · Oct 14, 2006

I think a tax expert would be a good idea in '06.

Jackmo

Sea Farmer · Oct 14, 2006

May depend on your accounting choice. Cash basis or accrual basis.

Cash basis -- when you paid for it.

Accrual basis -- when the obligation was incurred.

And listen to Jackmo for next year. Accountants cost less than tax penalties.

Sea Farmer · Oct 14, 2006

May depend on your accounting choice. Cash basis or accrual basis.

Cash basis -- when you paid for it.

Accrual basis -- when the obligation was incurred.

And listen to Jackmo for next year. Accountants cost less than tax penalties.

Sea Farmer · Oct 14, 2006

May depend on your accounting choice. Cash basis or accrual basis.

Cash basis -- when you paid for it.

Accrual basis -- when the obligation was incurred.

And listen to Jackmo for next year. Accountants cost less than tax penalties.

Davis In SC · Oct 15, 2006

Perhaps I did not understand the question exactly, but here is my take on it: You bought the machinery in one year, but are waiting until the next to start writing it off. I assume you are either doing an accelerated depreciation schedule. or a Sect. 179. I do not think the IRS cares if you wait a year to start claiming it. I once knew a shop owner that did not even write off his machinery, he just absorbed the cost, then claimed it & took the loss if he sold it. I am not a CPA, or attorney, just a machinist, so this advise is not valid. If you are going to be in business, find a good CPA, one that you feel comfortable with. From my experience, a CPA in a small firm will serve you better than one in a big firm... I was lucky to find a good one, he is always willing to answer a few questions all during the year, then we settle up when he does my tax. It has always been my feeling that a CPA should be able to save you enough on taxes to cover his/her fees, all legally.

Davis In SC · Oct 15, 2006

Perhaps I did not understand the question exactly, but here is my take on it: You bought the machinery in one year, but are waiting until the next to start writing it off. I assume you are either doing an accelerated depreciation schedule. or a Sect. 179. I do not think the IRS cares if you wait a year to start claiming it. I once knew a shop owner that did not even write off his machinery, he just absorbed the cost, then claimed it & took the loss if he sold it. I am not a CPA, or attorney, just a machinist, so this advise is not valid. If you are going to be in business, find a good CPA, one that you feel comfortable with. From my experience, a CPA in a small firm will serve you better than one in a big firm... I was lucky to find a good one, he is always willing to answer a few questions all during the year, then we settle up when he does my tax. It has always been my feeling that a CPA should be able to save you enough on taxes to cover his/her fees, all legally.

OT Income tax help

Plastic

Plastic

Plastic

Stainless

Stainless

Stainless

Diamond

Diamond

Diamond

Plastic

Plastic

Plastic

Hot Rolled

Hot Rolled

Hot Rolled

Diamond

Diamond

Diamond

Diamond

Diamond

Similar threads