Asset worksheet instructions and Form 3115

[annmci]

Why do the instructions for the asset worksheet indicate that if you are going to do a Form 3115 you shouldn't enter what the previous depreciation should have been and leave previous blank, if I read it correctly?  

[ThomasM125]

You shouldn't enter the previous year's missed depreciation since an adjustment will be entered on the Form 3115 to account for that. TurboTax will accrue the proper accumulated depreciation when you sell the asset regardless of what you entered, as per IRS regulations. The program will also enter the correct depreciation in the current year based on the cost, date put into service and the type of asset entered. So, it isn't necessary to make an adjustment to actual depreciation entered.

[Edited 2/17/26 at 3:55 PST]

@annmci 

[annmci]

I haven't gotten into the form that much yet but are you saying that the 3115 in TT Business for Sub S has a place to enter each asset separately?

[ThomasM125]

No, you don't enter individual assets in Form 3115. TurboTax will accrue the proper accumulated depreciation when you sell the asset regardless of what you entered, as per IRS regulations. The program will also enter the correct depreciation in the current year based on the cost, date put into service and the type of asset entered. So, it isn't necessary to make an adjustment to actual depreciation entered.

[Edited 2/17/26 at 3:58 PM PST]

@annmci