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Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
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Experience:  Enrolled to Represent Taxpayers Before The IRS
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I have an S Corp that started building a building in Oct 2007

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I have an S Corp that started building a building in Oct 2007 and purchased some operating Eq in late 2007. There was no income at all in 2007 as we did not begin operating until 02/08. Do we file an 1120S for 2007 or just put it all on 2008? The depreciation module in my tax program asks for date put in service which would be 2008.

Hello and thanks you for using Just Answer. You should file your 2007 Form 1120S and start to depreciate your purchases and building. If you did not have income for 2007 your losses for 2007 can offset any gains for 2008 or future years gains.

Customer: replied 8 years ago.
One more question. Since the depreciation instructions ask for "Date Put In Service" can I just use February 0f 2008 instead of the 2007 dates?

Depreciation begins at the point when property is "ready and available" for use in a trade or business, regardless of when the asset was purchased. The date it is placed in service is used to determine when the tax year depreciation begins. If the property was "read and available" for use in February 2008 that is the date you should use.

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