New Carpet Installed - Sec179 in Yr Installed or Paid?

#2 04-20-2005, 09:28 PM

"/brian" <codfish[at]cotse.net> wrote:
- quote -

> "effi" <effi[at]ev1.net> wrote:
> > "Ken B. Winger" <kbwing[at]comcast.net> wrote:

> > > T/P purchased New carpet for entire home in which 1 room is
> > > used exclusively for home office. Carpet was installed in
> > > 2003 for 8k, however omitted it on his 2003 return. Took out
> > > a deferred contract where he paid balance in full in 2004.
> > > > > Q1: Should he not amend 2003 and add the carpet as a
> > > home-office improvement for its business office percentage
> > > and take Sec179?
> > > > > Q2: Or add it as a home office improvement on his 2004
> > > return and elect to depreciate it over its useful life,
> > > using 2003 as date it was placed in service?
> > > > > I believe the correct method is what is stated in Q1 since
> > > the date you paid for it is irrelevant..

> > shouldn't a section 179 election be made on a timely filed
> > original return, making any section 179 "election" made
> > after that generally being invalid?
> > > if so, Q1 is invalid
> > > may want to research it and see if a reporting position
> > could be supported that the 2004 payment was for the home
> > office portion and take section 179 expense for 2004

> There were new Section 179 regs issued in 2004 that
> substantially liberalize when one can make an election.
> See Treas. Reg. § 1.179-5T

interesting facet of the issue

looks like you're referring to temporary regulations

[insert usual conversation and caveat (expiration) about
temporary regulations here]

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#1 04-19-2005, 02:37 PM

"effi" <effi[at]ev1.net> wrote:
- quote -

> "Ken B. Winger" <kbwing[at]comcast.net> wrote:

> > T/P purchased New carpet for entire home in which 1 room is
> > used exclusively for home office. Carpet was installed in
> > 2003 for 8k, however omitted it on his 2003 return. Took out
> > a deferred contract where he paid balance in full in 2004.
> > > Q1: Should he not amend 2003 and add the carpet as a
> > home-office improvement for its business office percentage
> > and take Sec179?
> > > Q2: Or add it as a home office improvement on his 2004
> > return and elect to depreciate it over its useful life,
> > using 2003 as date it was placed in service?
> > > I believe the correct method is what is stated in Q1 since
> > the date you paid for it is irrelevant..

> shouldn't a section 179 election be made on a timely filed
> original return, making any section 179 "election" made
> after that generally being invalid?
> if so, Q1 is invalid
> may want to research it and see if a reporting position
> could be supported that the 2004 payment was for the home
> office portion and take section 179 expense for 2004

There were new Section 179 regs issued in 2004 that
substantially liberalize when one can make an election.
See Treas. Reg. § 1.179-5T

/brian

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

04-15-2005, 11:24 PM

"Ken B. Winger" <kbwing[at]comcast.net> wrote:

- quote -

> T/P purchased New carpet for entire home in which 1 room is
> used exclusively for home office. Carpet was installed in
> 2003 for 8k, however omitted it on his 2003 return. Took out
> a deferred contract where he paid balance in full in 2004.
> Q1: Should he not amend 2003 and add the carpet as a
> home-office improvement for its business office percentage
> and take Sec179?
> Q2: Or add it as a home office improvement on his 2004
> return and elect to depreciate it over its useful life,
> using 2003 as date it was placed in service?
> I believe the correct method is what is stated in Q1 since
> the date you paid for it is irrelevant..

shouldn't a section 179 election be made on a timely filed
original return, making any section 179 "election" made
after that generally being invalid?

if so, Q1 is invalid

may want to research it and see if a reporting position
could be supported that the 2004 payment was for the home
office portion and take section 179 expense for 2004

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

#-1 04-14-2005, 04:31 PM

T/P purchased New carpet for entire home in which 1 room is
used exclusively for home office. Carpet was installed in
2003 for 8k, however omitted it on his 2003 return. Took out
a deferred contract where he paid balance in full in 2004.

Q1: Should he not amend 2003 and add the carpet as a
home-office improvement for its business office percentage
and take Sec179?

Q2: Or add it as a home office improvement on his 2004
return and elect to depreciate it over its useful life,
using 2003 as date it was placed in service?

I believe the correct method is what is stated in Q1 since
the date you paid for it is irrelevant..

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

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