____ You did not claim depreciation on your home, automobile or other such items used for personal purposes.
____ You did not depreciate the cost of land.
____ You did not claim depreciation for that part of the year that you did not own or use the property.
____ You did not claim depreciation on property that you did not own.
____ You did not claim depreciation for property that has been or should have been fully depreciated in prior years.
____ You did not depreciate goodwill.
____ You depreciated only property that is used in a trade or business or is for the production of income.
____ You did not claim depreciation on equipment or other business assets to the extent they are used to construct your own capital improvements.
____ You did not claim depreciation on items held for sale to customers.
____ On property converted from personal use to rental use, you used as the depreciable basis the lower of its cost or fair market value on the date of conversion.
____ You have established the cost or other basis for all items you have depreciated.
____ You have established that the items you depreciated are depreciable.
____ You have added to the cost or other basis of the property, the cost of major repairs or improvements to the property that have a useful life of more than one year. These improvements are capital expenditures, not repairs, and must be depreciated over the useful life of the property.
____ You did not claim depreciation that you failed to deduct in prior years.
____ You established that the automobile you depreciated was used more than 50% in a qualified business use.
____ You have established that the deduction you claimed as a Section 179 expense is for property qualified as Section 179 property.
____ You used the property for which a Section 179 deduction is claimed, more than 50% for business or work.
____ You have recaptured (included in income) the difference between the Section 179 deduction and what would have been otherwise allowed, because you ceased to use property predominately in a trade or business in a year after you placed it in service and claimed a Section 179 deduction.
____ You did not deduct more than the $17,500 maximum dollar limit in a tax year for Section 179 deductions. (A husband and wife filing separate returns for a tax year are treated as one taxpayer for purposes of the $17,500 limit. Unless they elect otherwise, 50% of the maximum dollar limit will be allocated to each.)
____ You depreciated only equipment used in your trade or business that had a useful life of more than one year.
____ You did not deduct more than $3,060 depreciation and Section 179 expense for your automobile in the first year; $4,900 for the second year;$2,950 for the third year and $1,775 for each later year.
© 1986, 1998 to 2002, Jack Warren Wade, Jr.
