How do I do straight-line depreciation in Home and Business?

[AnnetteB · Accepted solution]

To enter an asset using straight-line depreciation, use these steps:

• Navigate to the area of your tax return where you want to enter a depreciable asset

• Click Add an Asset

• On the screen titled Describe This Asset, choose Intangibles, Other property then click Continue

• On the screen titled Tell Us a Little More, choose Other asset type then click Continue

• On the next screen, enter the details for the description, cost, and date purchased or acquired then click Continue

• On the next screen, continue adding details regarding the asset and click Continue

• Next, choose the appropriate asset class (class life) and click Continue

• Depending on the date the asset was placed in service, there may be an additional screen asking for more information

• Next, choose the Straight Line depreciation method, then click Continue

• There will be additional questions to review your entries and add more details if needed (such as depreciation taken in prior years)

• Continue going through all screens until you get back to your summary screen showing your complete list of assets

[Good-Golden]

the straight-line depreciation calculates the entire year, instead of the period used: laptop bought 09/12/2019, using 3 years straight line, should be $173

1. Tell Us About This Asset: input Description; date of purchase (9/12/19); 100% business use

2. Describe This Asset: Other

3. Tell Us a Little More: Other Asset Type

4. How Much Did This Asset Cost: 1,556

5. Type Z, Other Asset

6. How Do You Want to Deduct this Item: Spread the deduction over several years

7. Is This Listed Property: Yes (confirming the computer input earlier)

8. Enter Asset Type and Class: Depreciation Type: Non-recovery property; Asset: 3 year

9. Choose a Depreciation Method: Straight Line

10.  Enter Recovery Period: 3

11. Depreciation Amount in 2019: $0

---------------------------------------

If I change my response:

8. Enter Asset Type and Class: Depreciation Type: No Entry; Asset: 3 year

9. Choose a Depreciation Method: SKIPPED

10.  Enter Recovery Period: SKIPPED

11. Depreciation Amount in 2019: $519

----------------------------------------

I have tried different combinations but the result is either $519 or $0.  Is this a bug with how TurboTax calculates depreciation using straight-line.  I understand that the default is MACRS.

Please HELP!!!

[ThomasM125]

I entered your numbers and came up with a depreciation amount of $259. 

If you take the cost of $1,556 and divide it by three years and then by twelve months you get a monthly depreciation of $43.22. I you multiply this by six months (TurboTax assumes a 1/2 year convention) you get $259.

So with the exception of the 1/2 year convention that is debatable, the program seems to be working correctly. 

It may be necessary for you to delete the asset entry and re-enter it. Sometimes if you change the figures too many times the routine won't work properly.

[phily55]

This doesn't work for the 1120s How do I keep straight line depreciation on the 1120s?