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Candyv
Returning Member

Can I override the years to depreciate assets?

First time user.  How can I switch the length on assets?  in years past, my accountants have used different yearly amounts.  I"m sure there's a reason but I'm don't know why.  I just let them do their job.  Well 2 are 39 years SL and those are correct on my form but 2 are 15 years MACRS and the numbers aren't close to years past.  how can I change the 2 assets that are 15 years so they are more accurate?

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5 Replies

Can I override the years to depreciate assets?

certain property can be 15 yyear

a.
Certain improvements made directly to land or added to it (such as shrubbery, fences, roads, sidewalks, and bridges).
b.
Any retail motor fuels outlet (defined later), such as a convenience store.
c.
Any municipal wastewater treatment plant.
d.
Initial clearing and grading land improvements for gas utility property.
e.
Electric transmission property (that is section 1245 property) used in the transmission at 69 or more kilovolts of electricity placed in service after April 11, 2005. See Natural gas gathering line and elec-tric transmission property, later.
f.
Any natural gas distribution line placed in service after April 11, 2005, and before January 1, 2011.
g.
Any telephone distribution plant and comparable equipment used for 2-way exchange of voice and data communications.
h.
Qualified improvement property placed in service after 2017

Qualified improvement property. Generally, this is any improvement to an interior part of a building that is nonresidential real property, and the improvement is section 1250 property, is made by you, and is placed in service by you after 2017 and after the date the building was first placed in service by any person.

 

15 year depreciation is computed using the 150% declining balance method so depreciation can vary the first few years.

 

for rates see IRS PUB 946

 

technically, if depreciation has been miscomputed you need to file form 3115 to correct the error. many taxpayers would defer this to a tax pro so it's done correcly.

 

 

 

 

 

Candyv
Returning Member

Can I override the years to depreciate assets?

they aren't calculated wrong.  I'm asking how to get it to recognize 15 years in turbo tax program.    it's only figuring my assets to 39 years which isn't how it needs to be done.

Can I override the years to depreciate assets?


@Candyv wrote:

  I'm asking how to get it to recognize 15 years in turbo tax program.  


 

How it should be entered depends on the circumstances.  (1) What EXACTLY are the items, (2) how are they used, and (3) what type of business is this?  Are they in the United States?

 

[EDIT] And what year was it "placed in service"?

 

Candyv
Returning Member

Can I override the years to depreciate assets?

It's a fence around my yard, So Land improvement 15 years.  SL.   for an in-home daycare in the US.  I know how i should enter it (based on previous years taxes) but Turbo Tax won't let me enter those specifics.   built in 2016

Can I override the years to depreciate assets?

Are you able to enter them as a "Land Improvement"?

 

Are you entering that had previously claimed the Special Depreciation Allowance?

 

Perhaps you are entering the "previous depreciation" incorrectly?  If you already said you claimed the Special Depreciation Allowance, I think you enter that as a SEPAREATE number, not as part of the "prior depreciation".

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