Welcome back! Ask questions, get answers, and join our large community of tax professionals.
- Topics
- Training
- Community
- Product Help
- Industry Discussions
- User Groups
- Discover
- Resources
In anticipation of the upcoming May 15th deadline, we've compiled a list of the most common questions here.
In anticipation of the upcoming May 15th deadline, we've compiled a list of the most common questions here.
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
- Intuit Accountants Community
- :
- ProSeries Tax
- :
- ProSeries Tax Discussions
- :
- Deprecation
Deprecation
Options
- Mark Topic as New
- Mark Topic as Read
- Float this Topic for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
MGC94
Level 7
03-12-2022
11:58 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
How to I depreciate a property that I started building in 2020 and will settle with the buyers this year
2021. My initial investment is 300,000 and I will receive 6 million with the sale?
Labels
3 Comments 3
TaxGuyBill
Level 15
03-12-2022
12:48 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
If the purpose of this activity is to build and sell a building, it is not depreciated at all.
Where are you reporting this activity on the tax return? On Schedule C as a business?
qbteachmt
Level 15
03-12-2022
01:08 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Depreciation = the allowable amount to take as an expense for something that has a long useful life, such as real estate (fixed assets), to show it is wearing out a bit over time as you use it for business functions. That's why there is a place to enter the date for "placed in service."
This is not your business fixed asset. This is your Inventory Asset. You are investing in something which, at the end, will not be yours because you sold it. Even if that crosses a year end, your invested value is right there in that project. Until you use it or sell it, it's just "improvement" as inventory.
Hope that helps.
*******************************
"Level Up" is a gaming function, not a real life function.
"Level Up" is a gaming function, not a real life function.
