A staff accountant for a United States CPA firm is hurriedly finalizing depreciation and gain computations for a 2008 calendar year client’s disposition of various business buildings. If the client’s return is not finished quickly, a filing extension will be necessary, and the staff accountant will be blamed for it. All of the buildings were acquired three years ago, are 39-year MACRS real property, and were disposed of in April 2008. Rather than compute depreciation for the year of disposition, the staff accountant uses the beginning-of-the-year adjusted basis for the buildings to compute the disposition gain or loss. Could this approach make any difference on the client’s return? Assume the client is an individual taxpayer.

Answer rating: 100% (QA)

A Disposition is the perpetual withdrawal of property from the use in exchange or Business or underway of pay A withdrawal can be made by sale trade r... View the full answer