Zona
Recycles dryer sheets
- Joined
- Apr 26, 2013
- Messages
- 208
DH worked as an IT consultant for many years using a pass-through LLC, kind of like a sole proprietor. He worked remotely for most clients. During that time, we had some assets for the business, such as laptops, home office furniture (a desk/chair), software, and because we claimed a home office deduction there was a small percentage of our primary residence building cost also on the depreciation schedule.
In 2018, DH took a full-time W-2 job and stopped taking consulting contracts for good. At that time, our (expensive) accountant put all assets as "out of service" on the Federal Asset Report that he includes with our taxes. Then DH fully retired in Fall 2021. Our accountant still included the Federal Asset Report pages in our copy of the return for tax year 2021 with all assets marked as "out of service" even though DH had not done consulting work at all since 2018.
Reading this forum has given me confidence to hopefully simplify and self-file our taxes for 2022 and beyond. (Our accountant still charges > $600 annually even though our situation is much simpler now). So this is my first year trying to use Turbo Tax -- our only income is Dividends, Interest, Capital Gains, and a Roth Conversion. I have already filled out our return in TT for this year (haven't e-filed yet) and the tax numbers look accurate. But since we don't run the consulting business anymore, TT didn't provide me a way to continue tracking the assets, if I even need to do that anymore. Is it okay to just ignore the old assets and not report them going forward? They are either past their useful life, or we are just going to keep them (a laptop, home office furniture, the office is attached to the house we live in, etc). I don't really understand depreciation -- will the IRS expect me to keep reporting on these old unused assets now that we are no longer working?
Apologies if this is too specific or complicated to be answered here; I will happily make an appt and pay H&R Block for their answer, but I hoped someone here might've had the same situation and know the answer. Thanks in advance!
In 2018, DH took a full-time W-2 job and stopped taking consulting contracts for good. At that time, our (expensive) accountant put all assets as "out of service" on the Federal Asset Report that he includes with our taxes. Then DH fully retired in Fall 2021. Our accountant still included the Federal Asset Report pages in our copy of the return for tax year 2021 with all assets marked as "out of service" even though DH had not done consulting work at all since 2018.
Reading this forum has given me confidence to hopefully simplify and self-file our taxes for 2022 and beyond. (Our accountant still charges > $600 annually even though our situation is much simpler now). So this is my first year trying to use Turbo Tax -- our only income is Dividends, Interest, Capital Gains, and a Roth Conversion. I have already filled out our return in TT for this year (haven't e-filed yet) and the tax numbers look accurate. But since we don't run the consulting business anymore, TT didn't provide me a way to continue tracking the assets, if I even need to do that anymore. Is it okay to just ignore the old assets and not report them going forward? They are either past their useful life, or we are just going to keep them (a laptop, home office furniture, the office is attached to the house we live in, etc). I don't really understand depreciation -- will the IRS expect me to keep reporting on these old unused assets now that we are no longer working?
Apologies if this is too specific or complicated to be answered here; I will happily make an appt and pay H&R Block for their answer, but I hoped someone here might've had the same situation and know the answer. Thanks in advance!