Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Nov 9, 2023 7:08:49 PM

Depreciating an asset in two consecutive entities?

A car is the only depreciable asset in the business. The business produced no income and ($11k) in current year losses, of which depreciation was only $188.

In other words, depreciating the asset does provide not appear to provide any benefit, nor is it expected to.

 

Would electing to take depreciation on the car today - in an entity that I will soon close - disqualify its eligibility for depreciating it later in a new entity?

0 1 265
1 Replies
Level 15
Nov 10, 2023 6:53:18 AM

No. The basis for depreciation would change, however.