I am confused because the section says it can be taken the same year as long as i continue to use it the following year but my business is closed... can someone please provide some guidance?
No. It does seem a bit confusing I agree, the rules for assets placed in service and removed from service in the same tax year have a special rule.
Excepted Property - Even if the requirements are met for depreciable property, you cannot depreciate the following
- Property placed in service and disposed of in the same year.
- Property converted from business use to personal use in the same tax year acquired.
If they are sold at a gain there will be a taxable gain, if sold at a loss there is no deductible loss.