Capital Gains and Losses

[tenderhearts]

Hi Tom,

I had a question if you don't mind. I bought a new computer in 2018 which took place of a computer I purchased in 2016. Our tax preparer did the capital gains form I'm guessing to dispose of this, I did not sell the other computer it just broke down, anyways, I have disposed of others on my depreciation and have never had anyone fill out this form. Is this correct?

[Michael]

Here is an earlier thread regarding depreciation on a computer: https://www.daycare.com/forum/showthread.php?t=91090

[tenderhearts]

Thanks for the link but I don't really get it sorry. Hoping Tom can let me know. I'm super confused.

[TomCopeland]

computer

Hi Tom,

I had a question if you don't mind. I bought a new computer in 2018 which took place of a computer I purchased in 2016. Our tax preparer did the capital gains form I'm guessing to dispose of this, I did not sell the other computer it just broke down, anyways, I have disposed of others on my depreciation and have never had anyone fill out this form. Is this correct?

If you were depreciating the first computer that broke, you can claim any remaining unclaimed depreciation in the year it broke. What form did your tax preparer use?

[tenderhearts]

He put in on schedule D as a shorter-Term Capital Gains and Losses and form 8849
Under part 1 he filled out line 3, under cost E he put 200 then under column G for adjustments 200.
But when I look at Additional Income and Adjustments to Income Schedule 1 line 14 it lists 0, I'm confused.

[TomCopeland]

computer

He put in on schedule D as a shorter-Term Capital Gains and Losses and form 8849
Under part 1 he filled out line 3, under cost E he put 200 then under column G for adjustments 200.
But when I look at Additional Income and Adjustments to Income Schedule 1 line 14 it lists 0, I'm confused.

I'm not an expert on Schedule D or Form 8849. However, if you disposed the computer and didn't sell it, and $200 represents the unclaimed depreciation, you should show a $200 loss that you can deduct as a business expense.