Solved
Disposing of depreciated assets that are thrown away
I know this question has been asked in one form or another several times, but there appear to be many answers and no consensus, so I would just like some clarification. I have a computer that is old and out of date, sitting in the corner collecting dust. I brought it in service in 2010 and took section 179. It's still on my assets list, so I want to clean it up (and a bunch of other items). I've seen 3 options in the forums:
- Just delete it since it's depreciated and won't be sold
- Update it as "no longer used in 2024" and select YES for special handling
- Update it as "no longer used in 2024" and select NO for special handling, and enter $0 for sale price
For items 2 and 3, then I should wait until the next tax season to delete the items as they have been marked as disposed, since they won't be sold. But for items I might sell, I should leave them on the list.
Does it even matter if you go route 1, 2, or 3? I just don't want to increase any audit risks. Thanks.
