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Old 02-09-2011, 04:40 AM
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legomom922 legomom922 is offline
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Default Depreaction question when you go out of buiness

So, since I am almost out of business, if I bought something new in 2010, I know I depreciate it by 50% in the first yr and then the remaining over 7 yrs...but what happens when you are no longer in business? Do you still take the depreciation over the 7 yrs? Or am I pretty much done and dont have to do that at all? Or can I write off more of it since I'm almost done with my business?? I guess I'm confused, because how could i continue to write off expenses or in this case claim depreciation when I will no longer be in buisness?

As soon as tis DCG moves on, that swhen I will be done. She is 3, so she will be starting school in 2 yrs or if she leaves before that, whatever happens first.
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Old 02-09-2011, 09:12 AM
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TomCopeland TomCopeland is offline
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Default Depreciation - out of business

When you depreciate something and then go out of business before the end of the depreciation period - you don't get to deduct the depreciation once the business ends. So, if you started depreciating something over 7 years in 2010 (year 1) and then went out of business at the end of 2011 (year 2) you would stop claiming depreciation after 2011 and not be entitled to claim the last five years of depreciation.

If you stop your business before the end of the year, then you get a half a year's worth of depreciation for that year.

I explain this in detail in my book Family Child Care Tax Workbook and Organizer.

Join me for a webinar February 28 - "How to Reduce Your Taxes for 2010 and 2011". For more info:
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