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Level 4
posted Jan 20, 2022 3:15:56 PM

Fixed Asset

I purchased a fixed asset last year 2021 but it hung at the port and wasn't delivered until Jan 2022.  Can I claim it on 2021 return.  We are an S corp using cash accounting.

0 2 202
2 Replies
Level 15
Jan 20, 2022 3:44:21 PM

No. You don't enter the asset in the Business Assets section until the tax year that asset is actually placed in service.  Since you did not receive the asset until 2022, you have nothing concerning it to report on your 2021 tax return.

 

Expert Alumni
Jan 20, 2022 3:45:44 PM

You cannot start depreciating your fixed asset before it is placed in service.

 

As your asset is placed in service in 2022, you will start depreciating it in 2022. This applies even if you are on a cash basis and have already paid for the asset in 2021.