Hello Tax Pros:
I am writing to ask you kindly, please, if there are any serious consequences of choosing a "safe harbor method of accounting" as applied to a luxury truck purchased and placed in business in 2011 and on which 100% bonus depreciation was taken in 2011. Now for 2012 there is no depreciation allowed on that vehicle unless "safe harbor method of accounting" was picked up.
We would like to accept that "safe harbor accounting method" to be able to pull some depreciation on that vehicle for 2012 and not to wait so many years for that, but at the same time are afraid if that would also trigger anything else for us? - I mean anything other than depreciation deduction applied to that vehicle and which could partly be pulled right away on it in 2012.
In other words, would choosing that "safe harbor method of accounting" for 2012 only refer to that vehicle's depreciation deduction timing or perhaps it would also force us to change our accounting method for the whole business operation or additionally have some other implications on the whole business accounting, other than the above mentioned vehicle's depreciation deduction?
We are lost here. Please help us with at least your short answer.
I trust this will receive your consideration.
Kind regards,
Rysio.
I am writing to ask you kindly, please, if there are any serious consequences of choosing a "safe harbor method of accounting" as applied to a luxury truck purchased and placed in business in 2011 and on which 100% bonus depreciation was taken in 2011. Now for 2012 there is no depreciation allowed on that vehicle unless "safe harbor method of accounting" was picked up.
We would like to accept that "safe harbor accounting method" to be able to pull some depreciation on that vehicle for 2012 and not to wait so many years for that, but at the same time are afraid if that would also trigger anything else for us? - I mean anything other than depreciation deduction applied to that vehicle and which could partly be pulled right away on it in 2012.
In other words, would choosing that "safe harbor method of accounting" for 2012 only refer to that vehicle's depreciation deduction timing or perhaps it would also force us to change our accounting method for the whole business operation or additionally have some other implications on the whole business accounting, other than the above mentioned vehicle's depreciation deduction?
We are lost here. Please help us with at least your short answer.
I trust this will receive your consideration.
Kind regards,
Rysio.