Office Furniture Deduction - Last Year of Business - Can't Depreciate

Forum|Forum|7 years ago
June 5, 2019
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The year 2016 was the last year of my business operation and we lost a ton of money. I bought $3,000 worth of furniture for the office. Office furniture must be depreciated over time, but the business closed in 2016 so I can't depreciate it and because we took a huge loss it won't let me take a 179 100% deduction but wants me to carry it to 2017.

How can I deduct this furniture 100% for 2016 since that was our last year?

TurboTax Business Windows

M

MichaelMc

Employee

You must show the disposition of each individual asset. Whether these assets can be fully expensed will depend on the facts and circumstances. I assume that newly-purchased furniture was not abandoned. Was it sold or transferred to someone for value? Below is the procedure you must follow in TurboTax to process the disposition of the business assets.

In the Business Assets section, work through each individual asset on at a time

Select "Yes" on the screen, "Did you stop using this asset in 2016?"

The next screen will ask, "Special Handling Required?" If you sold the asset, select "No" and you will be prompted for your sales information on that specific asset. If you did not sell the asset, click the "Yes" button and continue.

This process must be completed for every business asset, even if it's already fully depreciated.