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Form 4562-Depreciation

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S

sligg

Guest
What is the name of your state?
New York

I'm taking deepreciation for a computer used in my home business.

Form 4562, Part V.

Placed in service (a): 1998
Business use (b): 100%
Cost (c): $4793
Basis for depr (d): $4793
Recovery period (e): 5 years
Method/convention (f): HY
Depreciation deduction (g): $479

I took $479 for years 1998, 1999, 2000, 2001.
What deduction do I take in 2002?
 


gobonas99

Member
Your depreciation each year is $958.60 (4793 / 5yrs). Using the half year convention, the depreciation would be 479.30 in the first and last year. So your depreciation should be as follows:

1998: $479.30 (first year, HY convention used)
1999: $958.60 (full year deprecation)
2000: $958.60 (full year deprecation)
2001: $958.60 (full year deprecation)
2002: $958.60 (full year deprecation)
2003: $479.30 (last year, HY convention used)
Total: $4793

Your depreciation deduction for 2002 is $958.60. I do not believe you can "catch up" the incorrect depreciation amounts from 1999, 2000, and 2001 that totals $1437.90 in 2002. I believe you will need to amend your 1999, 2000, and 2001 taxes to adjust for the correct depreciation amounts (by filing a 1040X - I believe that is the form you will need).
 

abezon

Senior Member
You must amend the 1999-2001 returns to claim the correct depreciation. Hurry -- 1999 closes in a week.

Your depreciation amounts depend on whether you chose the MACRS method or straight line depreciation.
 

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