- 12 - attributable to his equipment rental activity. The depreciation detail schedule listed nine pieces of equipment (one computer, two trucks, three tractors, and three trailers) that generated the $15,317 depreciation expense reported. According to the 1992 individual return (and prior years’ returns), the computer was placed in service on May 19, 1986; the trucks and tractors were placed in service on June 1, 1986; and the trailers were placed in service on July 9, 1986. The equipment was depreciated under the Accelerated Cost Recovery System, over a 5-year period, using the straight-line method, with a half-year convention (except for the computer), beginning on the date each asset was placed in service. 1993 Individual and Fiduciary Income Tax Returns By reason of Mr. Binder’s illness, petitioner obtained an extension of time to file his 1993 individual income tax return (1993 individual return). Petitioner did not file his 1993 individual return until after the extended due date. Instead of filing Form 1040 for 1993, petitioner filed Form 1040EZ, Income Tax Return for Single Filers With No Dependents, reporting no taxable income. Mr. Binder had advised petitioner to report all his business and investment activities on Form 1041, U.S. Fiduciary Income Tax Return (1993 fiduciary return), under the name and taxpayer identification number of the living trust. As a result, the 1993 fiduciary return reportedPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011