Hi
I have a client that purchased Furnitures for his office 10 day as before the end of his fiscal year. I’m wondering if there’s a specific rule about how much time the company should have the rights of the assets in order to deduct the full amount of the asset.
It must be used at least once before you can make any claim. If initial use was in the subsequent fiscal year, there is no claim for the 10 days.
I’d assume the client sat on a chair, pounded the desk with a fist and checked that the drawers opened. Qualifies.
(not entirely sarcastic…)
Methinks we’re sometimes getting on our high horse too often.
For a manufacturing client who’s modernizing their plant encompassing two or three interconnected projects to the tune of several million dollars, yes, I get the “in service” dates before I report them on the F/S. Otherwise I call them “plant & equipment under construction”. Following the same pattern, I don’t put them on sch.8 until they’re “available for use”. It’s not worth my reputation to cheat. I’ve had huge investment tax credit claims reviewed from time to time, with no repercussions.
If that same client bought new office furniture 10 days before the year end, do I ask when it was assembled and put in place? Not likely.
A close relative used to say “there’s a difference between scratching your ass and tearing it all to hell.”
Thanks for the chuckle. 
Hear, hear!! Well said.