Discussion:Business Computer Crash
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Discussion Forum Index --> Basic Tax Questions --> Business Computer Crash
Discussion Forum Index --> Tax Questions --> Business Computer Crash
Teapartytaxes (talk|edits) said: | 12 April 2008 |
| Client bought a computer in 2005, 40% business use, and it crashed in 2007, now completely useless. I started filling out Form 4684, Casualty and Theft Loss. Is this correct? I'm on ProSeries. If so, for cost to enter on this form do I enter 40% of original cost minus depreciation deductions taken in prior years? Also, what happens to the depreciation deduction, does it still continue to depreciate over the 5 years or ...? You can probably smell how new I am at all this. Any insight will be much appreciated! | |
Landon5784 (talk|edits) said: | 12 April 2008 |
| Take balance of depreciation this year | |
Teapartytaxes (talk|edits) said: | 13 April 2008 |
| how does one take the balance of depreciation this year? | |
Landon5784 (talk|edits) said: | 13 April 2008 |
| override the depreciation schedule...if you are in a hurry :) | |
Teapartytaxes (talk|edits) said: | 13 April 2008 |
| okay, so how come it would be 4797 instead of 4686, when the loss was due to casualty not sale? | |
| 13 April 2008 | |
| A casualty is a tree falling on your computer. A computer "crash" is a computer which wears out before it was expected to wear out (for whatever reason). The business portion of the asset is being disposed of as now worthless, i.e., its life was two years instead of five years. F4797 sounds right to me. | |
Teapartytaxes (talk|edits) said: | 13 April 2008 |
| instructions for 4686, yes, as well as pubs 946 and 547, but am presently in need of regular folk language rather than IRS jargon. thank you, jdugancpa. | |
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