Deprecaition Changes on items in storage for part of year.

[AWorman]

I have business items; furniture, computer and such,; that I have on my last several years taxes under depreciation. I closed my physical office in March 2020 and put most items, minus computer and office chair, in storage in my house for the rest of the year. Using computer and chair in home office not much else. How do I do this for 2020 taxes? Thank you! Amber Worman

[AWorman]

I have business items; furniture, computer and such,; that I have on my last several years taxes under depreciation. I closed my physical office in March 2020 and put most items, minus computer and office chair, in storage in my house for the rest of the year. Using computer and chair in home office not much else. How do I do this for 2020 taxes? Thank you! Amber Worman

[ColeenD3]

You indicate that you have converted each item to personal use. Please see this answer from AmyC.

If you purchase an item and depreciate it over its life span, it's value goes to zero since you are getting a little money back each year. At the end of it's life, it may be no good and you throw it away. No tax consequence. Maybe, something happens and it is in great shape and you can sell it for $2,000. Then you pay taxes on the $2,000. 

Some people write off extra depreciation, with bonus depreciation or sec 179 deduction and take most or all of it the first year. They they sell it the second year or trade it in or go out of business, they already got that money early, it has to be accounted for and can increase you tax liability.

[AWorman]

Thank you for the comment. I actually didn't not convert to personal use. It is in storage in my house, however, not in personal use. I am storing it in case I get a new office or sell it. Is this different?

[ToddL99]

As long as you intend to continue using them for business purposes, you can continue claiming a depreciation deduction. This would appear to be the case since you are still operating a business (computer and office chair in use) and are contemplating reopening a physical office where they would be needed.

A lot of business assets were placed in indeterminate storage in 2020. Once you decide not to open another physical office, these items would likely be considered as converted to personal use and awaiting sale or disposition.

[AWorman]

Thank you for the information Todd. I have not decided yet if I am going to use/need these, that is correct. I have other business furniture I am not using but storing besides the computer and chair. Does this matter?

If I did Disposition the items since its out of use right now, can I bring it back to use tax wise later if I do decide to use it? Or is it gone?