Discussion:Sec 179 on Amended Return
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| {{ForumReplyPost|UserID=Death&Taxes|Date=15 October 2009|Text=What am I missing? A 2006 return was due 4/15/07, or 10/15/07 with extension. Wouldn't he have until 4/15/10?}} | {{ForumReplyPost|UserID=Death&Taxes|Date=15 October 2009|Text=What am I missing? A 2006 return was due 4/15/07, or 10/15/07 with extension. Wouldn't he have until 4/15/10?}} | ||
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| + | {{ForumReplyPost|UserID=FLAcct|Date=15 October 2009|Text=Apparently the out of date Reg said that the amended return (with Sec 179 added) must be filed by the due date, plus extensions, of the original return. The new Reg apparently says the amended return (with Sec 179 added) can be filed until the regular deadline for filing an amended return. At least this is my understanding now.}} | ||
Revision as of 13:29, 15 October 2009
Discussion Forum Index --> Basic Tax Questions --> Sec 179 on Amended Return
Discussion Forum Index --> Tax Questions --> Sec 179 on Amended Return
| 14 October 2009 | |
| I am amending a 2006 tax return which includes a Schedule C for a business that was purchased that year. The chain store tax preparer did not depreciate any of the tangible/intangible assets that were bought with the business, among many other errors. I have read the threads on Section 179 and just want to make sure my understanding is correct. I can not claim a Section 179 deduction on the 2006 amended return at this point. I would only have been able to claim the Section 179 on an amended return if the amended return was filed by the due date, plus extensions for the original return (in this case 4-15-07). Is this correct? | |
Harry Boscoe (talk|edits) said: | 14 October 2009 |
| I thought that the "original return" rule changed about four or maybe five years ago. Read the *current* IRS pubs and see if the "late" election is now allowed. | |
| 14 October 2009 | |
| The amended return must be filed within the time proscribed by law. See publ. 946. | |
| 14 October 2009 | |
| I believe you are too late. If the 2006 return was never filed in the first place then I believe you could take or use section 179. | |
Death&Taxes (talk|edits) said: | 14 October 2009 |
| You might read Reg. 1.179-5(a) regarding amendment possibilities. | |
| 15 October 2009 | |
| From reading this Reg, I believe my original interpretation is correct. You can claim Sec 179 on an amended return but only if it is "filed within the time prescribed by law (including extensions) for filing the return for such taxable year". It does not say "within the time prescribed by law for filing the "amended" return. So I could only claim Sec 179 on a 2006 amended return if the amended return was filed by 4-15-07 or 10-15-07 if an extension was filed. Is this how you interpret this sentence? | |
| 15 October 2009 | |
| No, not really. Reg 1.179-5(a) does not apply to the 2006 tax year. Instead, Reg. 1.179-5(c) applies. It is not too late to amend 2006 to claim Sec. 179. | |
| 15 October 2009 | |
| I just realized that Tax Almanac's version of Reg 1.179-5(c) is out of date. I believe that it should read as follows:
(c) Section 179 property placed in service by the taxpayer in a taxable year beginning after 2002 and before 2008 —(1) In general. For any taxable year beginning after 2002 and before 2008, a taxpayer is permitted to make or revoke an election under section 179 without the consent of the Commissioner on an amended Federal tax return for that taxable year. This amended return must be filed within the time prescribed by law for filing an amended return for such taxable year. | |
| 15 October 2009 | |
| R2 is correct. If you file today, you can make the election to expense assets under §179 for a 2006 return. | |
Death&Taxes (talk|edits) said: | 15 October 2009 |
| What am I missing? A 2006 return was due 4/15/07, or 10/15/07 with extension. Wouldn't he have until 4/15/10? | |
| 15 October 2009 | |
| Apparently the out of date Reg said that the amended return (with Sec 179 added) must be filed by the due date, plus extensions, of the original return. The new Reg apparently says the amended return (with Sec 179 added) can be filed until the regular deadline for filing an amended return. At least this is my understanding now. | |
