Forgot to take Section 179 deduction, what now?

[Anonymous]

I bought furniture last year and forgot to take the deduction. It wasn't a large amount so I'd rather not file an amendment. I expect I can't take the section 179 deduction now. What would my options be?

I think I can still depreciate this year. If so, then would I lose last year's depreciation and start depreciating at year 2? I read furniture can be depreciated for 5 years, so that's what I'll choose.

Thanks for any advice/confirmation.

[Anonymous]

if you set up the furniture as a depreciable item you should see the depreciation on form 4562 for the first year.

if you checked the box that it was economic stimulus property TT should have taken bonus depreciation equal to the full cost. you would see this on line 14 of form 4562. Thus you got the same deduction as taking section 179. 

bonus is in my opinion better than 179. there is no business income or $ limitation 

you are correct that Section 179 must be taken in the year the item is placed into service and not in a later year.  

[Anonymous]

Thanks for the advice, but I didn't check the box last year (when I bought it). Can I still check the box and take the depreciation this year? And if yes, would I then only take it for 4 years instead of 5 (e.g. I missed out on my chance to take the first year of depreciation in 2019)?

[Anonymous]

 like section 179 you would have to go back and amend the original return.  i am assuming TT is computing depreciation on the furniture which based on a 5 year life would mean it's used in residential real estate. office furniture has a 7 year life.

since neither 179 nor bonus were taken 

1st year with 5 year life depr should be 20% of cost 7 year 14.29%. if 40% or more of the cost of the assets (other than property subject to mid-month convention) was put into service in the 4th quarter then depr is computed using the mid-quarter convention.   

for additional info on depreciation see PUB 946

https://www.irs.gov/forms-pubs/about-publication-946