[jeff]

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Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Mehwish]

thanks!

one more Q about MACRS

Furniture and fixture bought on nov 1, 2012 for 56000. no 179 expense.

The question asked for depr for macrs.

answer said 56000*2/7*1/8=2000

where did they get 2/7 and 1/8?

[Mehwish]

thanks!

one more Q about MACRS

Furniture and fixture bought on nov 1, 2012 for 56000. no 179 expense.

The question asked for depr for macrs.

answer said 56000*2/7*1/8=2000

where did they get 2/7 and 1/8?

[Skrier]

@insiyah…I was looking for an example, but I am not able to find one. I am not sure on how a capital loss would be handled in this situation, any ordinary losses are limited to the amount at risk…or their basis in the partnership. I am not clear on if capital losses work the same way. If I find something tomorrow, I will post it.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

@insiyah…I was looking for an example, but I am not able to find one. I am not sure on how a capital loss would be handled in this situation, any ordinary losses are limited to the amount at risk…or their basis in the partnership. I am not clear on if capital losses work the same way. If I find something tomorrow, I will post it.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Kenada]

Appreciate that Skrier 🙂

FAR 05/27/14; 786/110 - Done !

[Kenada]

Appreciate that Skrier 🙂

FAR 05/27/14; 786/110 - Done !

[Qlad]

@insiyah….about ch 7 means test….purpose is to see if debtor has enough money to make payments under ch 13,….bcoz under ch 7 he will be fully discharged… Net monthly income*60mnths (5 year total of disposable income)

— if 5 year total is $7025 or less, debtor can file under ch 7

–if 5 yr total above 11725, debtor cannot file for ch 7 but can file for ch 13

—if 5 year total is between 7025 and 11725 …then 2 more steps…

a. if insufficient funds to pay 25% of non-priority debts, debtor can file under ch 7

b. if sufficient to pay 25% or more of non priority ,…can file under ch 13 but not ch 7.

and yes it comes to $190 or so per month

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

@insiyah….about ch 7 means test….purpose is to see if debtor has enough money to make payments under ch 13,….bcoz under ch 7 he will be fully discharged… Net monthly income*60mnths (5 year total of disposable income)

— if 5 year total is $7025 or less, debtor can file under ch 7

–if 5 yr total above 11725, debtor cannot file for ch 7 but can file for ch 13

—if 5 year total is between 7025 and 11725 …then 2 more steps…

a. if insufficient funds to pay 25% of non-priority debts, debtor can file under ch 7

b. if sufficient to pay 25% or more of non priority ,…can file under ch 13 but not ch 7.

and yes it comes to $190 or so per month

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[UCMCPA]

@mehwish..

I'm not sure what they are doing. But the first year depr for a 7 year class property under half year is 14.29 % (this happens to be half of 2/7), then I'm assuming the 1/8 is for mid-quarter .

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

@mehwish..

I'm not sure what they are doing. But the first year depr for a 7 year class property under half year is 14.29 % (this happens to be half of 2/7), then I'm assuming the 1/8 is for mid-quarter .

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Skrier]

@insiyah….the mom and pop rule applies to real estate passive activity losses. You are allowed up to 25,000 is losses from real estate passive activities to offset ordinary income if you actively participate. The 25,000 is reduced by 50% for agi greater than 100,000. So if you actively participate and have losses of 30,000 and agi of 125,000 then you would reduce the 25,000 by 50% of the excess. The credit is completely phased out over 150,000.

So it would look like this:

125,000- 100,000= 25,000 x .50= 12,500 so then the $25,000 would be reduced to $12,500 (25,000-12,500)

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

@insiyah….the mom and pop rule applies to real estate passive activity losses. You are allowed up to 25,000 is losses from real estate passive activities to offset ordinary income if you actively participate. The 25,000 is reduced by 50% for agi greater than 100,000. So if you actively participate and have losses of 30,000 and agi of 125,000 then you would reduce the 25,000 by 50% of the excess. The credit is completely phased out over 150,000.

So it would look like this:

125,000- 100,000= 25,000 x .50= 12,500 so then the $25,000 would be reduced to $12,500 (25,000-12,500)

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Qlad]

@Mehwish,…MACRS is double declining method….so use 2 times of straight line…7 is the no. of years furniture is depreciated under MACRS…1/8 or 3/8 or 5/8 or 7/8 ….they all depend on the quarter in which the furniture was bought….so if the furniture was bought in the last quarter of the year…1/8 will be used..

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

@Mehwish,…MACRS is double declining method….so use 2 times of straight line…7 is the no. of years furniture is depreciated under MACRS…1/8 or 3/8 or 5/8 or 7/8 ….they all depend on the quarter in which the furniture was bought….so if the furniture was bought in the last quarter of the year…1/8 will be used..

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[UCMCPA]

@mehwish

The % that should be applied is .0357 based on tables. So 56,000 x .0357 = 1,999.20

However, since you don't have the tables I'm assuming they are just factoring in the 2/7 for a FULL year depreciation under half year, THEN multiplying it by a 1/8 mid quarter since it was placed in service in the LAST quarter, or 12.5 percent.

56,0000 x (2/7 * 1/8) = 56,000 x .035714 = 1999.984.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Author]

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