Depreciation

[gtaylor]

I have an S-Corporation.  For the year 2019 the business was not in operation except for the first quarter of 2019.  

The S-Corporation's tangible assets have been depreciating for approximately 3-5 years prior to 2019 using MACRS.

Should I just not list any tangible assets for the S-Corporation on my tax returns for 2019?

Or, if I do list the assets, what do I list as my recovery period since the assets weren't used for the last three quarters of 2019?

[AmeliesUncle]

Did the business close?  What are the assets doing now?

[DaveF1006]

The important thing is, did you close your business? If so, the IRS needs to know. Write a letter stating that you're closing the account due to close of business. Include the corporate name in the letter, the EIN and address of the corporation in your letter. Also include a copy of the EIN Assignment Notice if available to you. Mail it to the IRS ATTN: EO Entity, Mail Stop 6273, Ogden, UT 84201.

2019 is the final year of your business so you will need to include the assets and their recovery periods. Here is an IRS checklist, for ca tax closing down a business. Keep in mind, if you haven't disposed of your assets, you will need to file a tax return in the year you dispose of them in order to recapture any depreciation that you claimed in prior years.