For '17 tax returnI elected to take the De Minimis Safe Harbor Election. What are the implications of electing to take this when in previous year you depreciated items?

[soberjack17]

Generally I depreciate our business assets, and didn't realize that if I took this election that I would not have a  Form 4562 Depreciation and Amortization with my tax return.  I was under the assumption this election was for items that were considered under $2500.  I was asked by daughters school to provide  Form 4562 Depreciation and Amortization and when I went to get it, there was none.  Did I miss the form, or by electing to take De Minimis Safe Harbor Election did this do away with the Form 4562?  

Do I need to amend my taxes to stay in line with previous years?  Most of the items I depreciate are worth more the $2500.  I have attached my previous years 4562 that has personal info redacted.  Please look and give me advice on what I need to do, thanks.

[BMcCalpin]

You often don't have to file form 4562 every year you take depreciation. Generally, you file form 4562 when you acquire a depreciable asset in the current year or took a Section 179 deduction. 

Items that fall under the De Minimis Safe Harbor Election for Assets are expensed (deducted) in the current year rather than depreciated. Read about how this works at https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations#Ad...

Here is the entire list from the IRA about when you have to file the 4562:

"Except as otherwise noted, complete and file Form 4562 if you are claiming any of the following.

• Depreciation for property placed in service during the 2017 tax year.
• A section 179 expense deduction (which may include a carryover from a previous year).
• Depreciation on any vehicle or other listed property (regardless of when it was placed in service).
• A deduction for any vehicle reported on a form other than Schedule C (Form 1040), Profit or Loss From Business, or Schedule C-EZ (Form 1040), Net Profit From Business.
• Any depreciation on a corporate income tax return (other than Form 1120S).
• Amortization of costs that begins during the 2017 tax year."

https://www.irs.gov/instructions/i4562#idm140385555566032

[soberjack17]

Ok well then I do have passive activity loss carryover, and  I do have depreciation of vehicle and or other property.  So do I just go back into turbo tax online and amend?  Also, I usually get a long version of my tax return and I can't seem to find it this year.  Like in 2016 I had a short one (51 pages), but then had a detailed long one that was around 132 pages.  This year I got 32 pages and can't find an option that is longer.  Is that because of the De Minimis Safe Harbor Election?  Thanks

[BMcCalpin]

If "Nissian Rouge" on your spreadsheet is a Nissan Rogue, note that you are showing no depreciation (no depreciable basis to calculate from) so that possibly would not trigger the 4562.

I don't see where a passive activity loss carryover should force a 4562.

I have heard anecdotally that TurboTax is printing fewer pages this year, but I would have no idea why (you might call the support number and ask). However, if there are depreciation schedules printed in support of the 4562, you could imagine that if there was no 4562, there would be no support schedules - that might explain some of the decrease.

[soberjack17]

Ok I will look into contacting the support number.  Ultimately the only reason this whole thing has come up is because, the school where my child goes is a private school which gives out financial aid.  In order to qualify for this financial aid, we always have to submit our 1040 and W2's.  But this year, they want us to submit: Schedule C and Form 4562 as well.  Well currently I have no -4562 to submit so not sure how I need to proceed.

[soberjack17]

Ok I will look into contacting the support number.  Ultimately the only reason this whole thing has come up is because, the school where my child goes is a private school which gives out financial aid.  In order to qualify for this financial aid, we always have to submit our 1040 and W2's.  But this year, they want us to submit: Schedule C and Form 4562 as well.  Well currently I have no -4562 to submit so not sure how I need to proceed.

[BMcCalpin]

Submit your Schedule C and point out that you didn't have to file the 4562 this year - the IRS said so. But the depreciation deduction will be on Schedule C anyway, if it's all that important to them.

Note that by taking the election for the safe harbor, you have expensed any qualifying items that you bought. You ought to be able to see some of these on your Schedule C deductions by looking at them closely. If they wonder where the 4562 went, you can point them to these expensed items instead.