Accounting & Bookkeeping & Small Business Forum

[Guest]

This client have 4 truck that he have never depreciated or reported they where placed to work in differents date the 5 years depreciation period have already pass Truck are (1989, 90, 95 94). My question is can this truck still be depreciated or just account for the expenses this vehicles produce ?
Your expert advice is greatly appreciated.

[Guest]

I am assuming yourt question has to do with tax reporting rather than book reporting. The trucks are fully depreciated PERIOD. The depreciation rules clearly state all depreciation allowed or allowable. Since, they did not actually take the depreciation on their tax return, the government assumes (allowable) that they did. Since the vehicles are fully depreciated, when the vehicles are sold, all amount received will be taxable gain.