"mpally" <mpaluczak19[at]yahoo.com> wrote:

- quote -

Thanks for responding. I don't think that's exactly correct,
because you're saying that if I buy in November, and sell
the following October, I wouldn't take any depreciation.
Yet, my tax return, with depreciation deducted, would be
filed by April 15, long before I contemplated selling. I
would agree with you in a situation when the purchase and
sale occur in the same taxable year however.

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In order to take a depreciation deduction, you must hold the
property for longer than one year. In this case, the
property was held for 10 months, so no depreciation
deduction is allowed on either real estate or personal
property.

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Taxpayer places non residential real estate in service in
Jan 2004, along with furniture and equipment. Both realty
and personal property are sold in October, 2004. Is any
MACRS depreciation properly recorded in 2004 on either the
real estate or personal property?

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