How to reduce the depreciation basis of an asset to zero in Turbo Tax?

[davidmloch]

In a prior year, a CPA reduced the depreciation basis of an appliance placed in service that year to zero. This year, and henceforth, I am using Turbo Tax. How do I enter this in the Asset Worksheet?  No depreciation was taken for the asset, a refrigerator in a rental house.   (I tried making the depreciation basis zero by entering the price of the refrigerator equal to the value of the land, but Turbo Tax does not like this.)

[AliciaP1]

If the depreciable basis is $0 but no depreciation was reported, the Section 179 deduction was likely elected for the refrigerator.  Your depreciation schedule for the year it was placed in service would show that.

In this case, you need to enter the cost of the asset on the Tell us about this rental asset screen and the Prior Section 179 deduction on the Section 179 deduction screen.

[davidmloch]

Thank you for your  reply.  I don't see the refrigerator was a Section 179 expense. Here is the record in my 2021 Depreciation and Amortization Report: Description: Refrigerator 2, date acquired: 8/8/20, Method: 200DB, Life: 5.00, Conv: HY, Unadjusted Cost or Basis: 964, Bus % Excl: (blank), Section 179 Expense: (blank), Reduction to Basis: 964, Basis for Depreciation: 0., Beginning Accumulated Depreciation: (blank), Current Sec 179 Expense: (blank), Current Year Deduction: 0. Ending Accumulated Depreciation: 0.

Would you please explain how I can enter in 2022 Turbo Tax Home and Biz that the Depreciation Basis is not the purchase price but zero (0) and have zero (0) accumulated depreciation?

[AliciaP1]

In this case, you will not need to enter the asset into TurboTax until you sell the refrigerator if you sell it for a profit (which means for anything more than $0).

@davidmloch 

[davidmloch]

Thank you for your reply. Sorry for my confusion. The asset has been reported in my Tax Returns efiled with the IRS in 2020 and 2021. Can I simply stop reporting it to the IRS in 2022 without any record notifying the IRS of its deletion and the rationale?