I recently got a question that I can't answer, and probably you can't either. I'm curious, though, if you have any thoughts.
The OP was doing his taxes with H&R Block software, and it came up with Accumulated Depreciation as zero, even though he says he still has 23 years of depreciation left. I have not seen any of his documents and know nothing of his finances.
Should I just send him to a real person at Block?
Thanks.
In the first year of operation, an asset would have an 'accumulated depreciation' of zero. Otherwise, it's not a term I've come across.
Since no asset class has a 24 year depreciation life, there should be some accumulated depreciation. This looks like he didn't enter the accumulated depreciation into the software. This is not something the software would calculate on its own unless he used the same software last year and brought last year's data forward.
Ira Smilovitz, EA Leonia, NJ
Thanks guys. Exactly what I needed to know.
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