Manually enter depreciation

[Coop55]

How can I manually change depreciation? I have an LLC established in 2014, S election in 2016. I started depreciation schedules based on 2014, but this year's (2019) edition of TurboTaxwon't let me select a date prior to 2016 for asset purchase. It is spitting out incorrect depreciation information for my accelerated depreciation and MACR based assets because of these incorrect dates. Any ideas?

[AnnetteB6]

Here is a guide for how to go about entering depreciation into TurboTax in order to duplicate the entries that have been made on previous returns to continue the same depreciation.

• Starting from the Schedule C or Schedule E section of your return until you get to the Assets/Depreciation section.
• Proceed to the point where you adding an asset on the page titled Describe This Asset.
• In order to enter the asset exactly as it has been reported in the past, choose the last option on the list, Intangibles, Other Property, then click Continue.
• On the next page titled, Tell Us a Little More, select Other asset type, then click Continue.
• Enter the detailed information about the asset:  description, cost, date purchased or acquired.  Click Continue.
• Continue with additional details on the next screen, then click Continue.
• Select the appropriate Asset Class, then click Continue.
• Choose the MACRS Convention, then click Continue.
• Select the Depreciation Method, then click Continue.
• Answer the question regarding Listed Property, then click Continue.  There may be some additional background questions as well, keep going.
• You will eventually come to a screen to confirm the Prior Depreciation, enter the data and click Continue.
• Finally, you will see an Asset Summary screen with the current year depreciation amount listed.  There is also a check-box here to Show Details.  This will open a full description for the asset so you can verify that it matches the previously reported information.  If it does not, you can choose to go Back and re-enter the data that needs to be changed. 

[Carl]

Unfortunately, Annette has not provided the information you "really" need. So here it is.

I have an LLC established in 2014, S election in 2016.

First, why you're dealing with this on a tax return that is 3 years back, I don't know. But it is what it is.

When you incorporated your business from a disregarded entity (LLC) to a corporation (S-CORP) that did not in any way form or fashion change your start business date.

Your *business* start date is still in 2014 on the same exact date you opened as an LLC. The business *INCORPORATION* date will be whatever date the business became an S-Corp. At a minimum, the incorporation date *must* be at least one day after you closed the LLC. But on the 1065 the business start date will be the *exact* *same* *date* you opened the LLC.

Then you'll find that you can enter your depreciable assets and the program will do things correctly. With your current incorrect business start date for the S-Corp, it doesn't matter what you do, the deprecation will be wrong *every* *single* *year*.

[Anonymous_]

Unfortunately, in TurboTax Business it is not made clear as to which dates to enter where and why.

The program has two dates you can enter, the date of incorporation (effective date of your corporation's existence) and the S corporation election date. Note that there is no "business state date".

The program will not allow you to input an S corporation election date that is prior to the date of incorporation. If you try to input the same dates for the incorporation and the Sub S election, you are going to have issues with property transferred to the corporation that was placed-in-service prior to those dates.

Therefore, if you enter the 2016 date as the election date and enter the 2014 date as the incorporation date, you should not experience any issues with incorrect depreciation schedules.

[al m]

i have a schl. E for a rental property, i went thought the income and expenses but can not find where to enter depreciation.

[JamesG1]

@al m

Residential rental property must be depreciated over 27.5 years.  See this TurboTax Help.

In TurboTax Online, report rental income and expense:  

• Down the left side of the screen, click on Federal.
• At the top of the screen click on Wages & Income.
• Under Your income, scroll down to Rentals, royalties and Farm.  Click Show more to the right.
• Click Edit / Add to the right of Rental Properties and Royalties.
• At the screen Your 2020 rentals and royalties summary, click on Edit to the right of the rental activity.
• At the screen Here's rental property info, scroll down to Assets (Depreciation) and click Edit to the right of the rental property.

TurboTax will ask questions and guide you through entering your rental property information and computing a depreciation expense.

[tanjarb302]

I am unable to enter depreciation for my rental home for 2020 taxes. There is nothing that states I can add depreciation. Where can I find this? 

[DawnC]

The rental depreciation is calculated when you enter the rental assets.   When you start out in the rental section, you enter information about the property, and then you have to enter all of your rental assets, the home or unit, and any additions you have added.   

You need to enter your rental property as an asset under the asset section of rental properties.  At some point, you'll come across the Rental Summary screen. Select Start next to Asset/Depreciation and follow the onscreen instructions. We'll figure out which depreciation method works best in your favor.

How do I handle capital improvements and depreciation for my rental?   

Where do I enter income and expenses from a rental property?   After you do this, proceed to the Assets section and enter the properties there.  

@tanjarb302

[pattietin7]

I followed the steps of the first reply which was great,  but since my prior depreciation was taken incorrectly and the figure is twice what it should be, my current depreciation shows as 0....this is not correct.  I need to manually change the depreciation....is this possible?  I am working on an amended 2021 return in TT Premiere.  Thank you

[AmeliesUncle]

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@pattietin7 wrote:

I followed the steps of the first reply which was great,  but since my prior depreciation was taken incorrectly and the figure is twice what it should be, my current depreciation shows as 0....this is not correct.  I need to manually change the depreciation....is this possible?  I am working on an amended 2021 return in TT Premiere.  Thank you

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Why do you think $0 is wrong?

If you have been accidently taking 'too much' depreciation, you may have already used it all up.

For a simplified example, let's say the item is $500 and you should have been depreciating it for $100 a year for 5 years.  But you accidently have been claiming $200 a year for three years.  In that case, you have already claimed $600 out of $500, so the program would correctly say your current year depreciation is $0.

[Carl]

but this year's (2019) edition of TurboTaxwon't let me select a date prior to 2016 for asset purchase.

That's usually because you have the wrong start date for the business. The start/open date of the business would be 2014, and the "incorporation" date would be in 2016. So that's something to check.