For my 2006 Income Tax Return, can I deduct an expense in 2006 that was left off in 2005?

Question

In 2005, I purchased a computer for my business. However, I’m looking over my 2005 return and there is no record of any one time or depreciated deduction for this expense. So, my question is two-fold:

1) Was this item deducted as an expense at all on my 2005 return and

2) If not, can I carry over this expense (for either a one time or depreciated deduction) on my 2006 return?

Answer 1

Normally that would not be expensed, but would be capitalized and depreciated. Check your 2005 return and see if a depreciation expense was taken for it. If not, you'll have to amend your 2005 return to grab that expense item. It may or may not be worth the hassle to do that, given the modest amount of tax that it will save you compared to the cost of amending the return.

You can take a depreciation expense for it for 2006 regardless of what you do for 2005 (unless you took a Section 179 deduction for it but if you did that you'd know that you did.)

Answer 2

This question can not be answeredd properly without review of the 2005 return. The answere is yes, no maybe and amend the 2005 return depending how or if the computer was reported at all. If you did you own taxes this could be a problem if not take it to the people that did the return and ask them to review it.

Answer 3

You will have to ask whom ever you had prepare last years tax return whether they expended the computer or not (They should have left notes for you, but I digress).

What you will need to do if the computer was not reported on your 2005 return is file an amended return and if you decide to depreciate the computer to depreciate the computer on your 2006 return as well.

Answer 4

It could be buried with other things in office expenses. If not you can depreciate it over 5 years and take 1/5 in 2006.

Answer 5

Your 2006 tax go back is for the artwork you probably did in 2006 even though it isn't filed till after the precise of the commercial 365 days, that's December 31, 2006 for most persons. also, for most persons tax returns at the on the spot are not due till April fifteenth of top the following 365 days to allow time that you ought to get carry of each and every of the tax information you'll want with the intention to document your tax go back because you may not document your tax go back till when you get carry of all of your tax information which includes your W-2s or 1099s.

Answer 6

you can't deduct it this year, but you can file an amended 2005 return if you want to go through the trouble.

Answer 7

Go to a professional! They will definately know