I claimed a truck on my 2011 return and placed it in service on 01/01/2011 for my dirt hauling business. I did not work in 2012 for myself. I took a job through a company that offered benefits. I have no income to report on my Schedule C, but have remaining depreciation to claim on the truck. I have not disposed of the truck and eventually plan on hauling dirt again part time once my full time job slows down. Do I have to file anything on my 2012 return for my business? I have not filed 2012 taxes yet.

ANSWER

The BIDaWIZ Team's Answer:

If you do intend to continue to use this property, it's considered idle property per IRS regulations (refer to IRS Publication 946 & IRC Section 167(a) ). You could include the depreciation as a deduction on your Schedule C which flows to your form 1040. The other option is to permanently retire the vehicle from service. However, it would seem that since you are eligible to claim the deduction, you should. However, since you have no income from the business you do not have to do so.