1739452
I have a 7-year asset purchased in 2014 and 150DB/HY was selected as the method/convention. The cost basis was $6,500. I've used several depreciation calculators and they all say the same values shown below in the "Calculator" column; however, TurboTax has deducted the values in the "TurboTax" column:
Calculator | TurboTax | |
2014 | 696 | 696 |
2015 | 1244 | 1244 |
2016 | 977 | 977 |
2017 | 768 | 796 |
2018 | 603 | 796 |
2019 | 474 | 796 |
2020 | 1738 | ???? |
Why are years 4, 5 and 6 "stuck" on 796 and not following what seems to be the consensus via the calculators? Other assets of mine are different starting in year 4 as well (5-year assets).
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You are not looking at the correct table ... https://www.irs.gov/pub/irs-pdf/p946.pdf
6500 x 12.25 = 796
See https://www.irs.gov/publications/p946#en_US_2019_publink1000107576
When using a declining balance method, you apply the same depreciation rate each year to the adjusted basis of your property. You must use the applicable convention for the first tax year and you must switch to the straight line method beginning in the first year for which it will give an equal or greater deduction. The straight line method is explained later.
You are not looking at the correct table ... https://www.irs.gov/pub/irs-pdf/p946.pdf
6500 x 12.25 = 796
the tax laws say when the remaining basis divided by the remaining life is more than the % depreciation method you switch to straight line - the remaining basis divided by the remaining life.
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