10322: 1120/1120S - EF Messages 0807 and 1017

EF Messages 0807 and 1017 can occur in an 1120 or 1120-S return.

You have used either:

• the EXP depreciation method with listed property (message 0807 and 1017)
• or a pre-1981 depreciation method with an asset placed in service after 1981 (message 1017).

EXP method used for listed property:

This example produces EF Messages 0807 and 1017 by using the EXP depreciation method for listed property. The EXP method cannot be used with listed property:

Section 179 expense can be claimed for listed property by using an acceptable depreciation method (the method that would be used if the asset were not being expensed) and by claiming Section 179 expense in the field 179 expense elected this year (or in the field for 179 expense elected in prior years, if appropriate).

Pre-1981 method used for post-1981 asset:

This example produces message 0807 because a pre-1981 depreciation method (DB) is used with an asset placed in service after 1981:

EF Message 0807 is corrected by selecting an appropriate depreciation method.