Can I put a previously purchased asset (2 years ago) on this year's return?

cctbailey_tax — Fri, 12 Mar 2021 22:20:13 GMT

My husband has a woodworking business and purchased a table saw in 2018. I am now realizing that I should have added it as an asset and done depreciation on it, but in looking back I don't think I did. Can I just add it to my taxes for this year?

Re: Can I put a previously purchased asset (2 years ago) on this year's return?

Cynthiad66 — Tue, 16 Mar 2021 03:26:19 GMT

Yes. You can also amend the two prior years to include the depreciation. Depending on the type of property you might want to use one of the special Bonus depreciation methods..

On your business taxes, depreciation (also called capitalization, cost recovery, or amortization) lets you deduct the "used up" portion of an asset's cost every year, until the asset no longer retains any value or has been sold, destroyed, or otherwise disposed of. The concept of depreciation is based on the notion that business assets eventually wear out, get used up, or become obsolete.

See this link for more information:What is Depreciation

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Can I put a previously purchased asset (2 years ago) on this year's return?

Re: Can I put a previously purchased asset (2 years ago) on this year's return?