How to enter Depreciation for business EQUIPMENT / machines in TT Home & Business 2020- Desktop

[davekro]

How do you enter the asset EQUIPMENT information (Description, Date in Service, Cost, Basis, Method, Prior & Current deprec.)  for prior year -and- current year EQUIPMENT in TurboTax Home & Business 2020 DESKTOP on a MAC? Yes, it is late 2023 and I am just now filing for the 2020 tax year. I’ll be doing 2021 & 2022 w/ TurboTax as soon as I figure out this depreciation issue in TT 2020. I have overpaid all my prior year pre-payments, but did not file... until now. In two + days of Googling this, I have found no answers for "equipment" depreciation. I'm very frustrated, so I searched for a TT forum, and here I am. ;o)

If there is no way to do this in TT Home & Business '20, '21, & '22, what can I do as a workaround?

Thank you, I really appreciate any assistance if there is a way to do this.

[VolvoGirl]

You enter it under Business Assets.  Click on the Business tab, then under Business Income & Expenses scroll down to Business Assets.

[VolvoGirl · Accepted solution]

I should have added.....You add them as new assets and enter the date  you bought it.  It will take you though entering the prior depreciation.  If you can't find the right screens I can make you more screen shots from my 2020 windows Home & Business program.  

[davekro]

Volvo Girl,

Thanks for how to find where to enter current and prior depreciation. As I studied my 2019 Depreciation report (attached) as well as ’16 & ’18, I can see that most of my equipment each year was taken as ‘Sched 179’ or ‘Special Deprec. Allowance, so deducted the year purchased. The (9) lines of equipment depreciated in 2014, was all used up by 2019. [Reminder: My questions in this thread relate to my very late filing of my 2020 tax return.]

Correct me if I am wrong, but since I plan to retire and sell my business in 2024 and all equipment with it, there is no need to enter all that prior cost basis/ deprec. into my 2020 TurboTax software history. I will not be selling the equipment off individually, so do not need to associate prior cost basis, etc.

The only two current Depreciation carrying forward items into my 2021, 22, 23 & 24 returns will be:

• The ‘Home Office’ percentage of $1907/ year. This seems to be covered in the Home Office Section.
• ‘Home Office Loan Costs’. This $25/ year has been listed by my prior tax guy in Form 4560 line 16 (Other deprec. incl. ACRS) for the prior 10 years.  (2 screen shots attached)

Not a big deal at $25/ year at all, but the questions at [ Bus. Assets > Bus. Tab > Bus. Inc. & Exp’s. > scroll to Bus. Assets ] do not fit this item. My 10 yr tax guy had the Method of Depr. as 30 yr, SL/NA… not an option in the Bus. Asset section of TTx.

Any thoughts where this $25 amount Prior Year Deprec. Report (2019)Prior returns use 30yr, SL/NAQ's don't apply to Hm.Off. Loan Costsmight go. Asking more for consistency to prior yrs, not the small $25 amount. ;o)

I really appreciate your earlier help and any thoughts on the above.

[DianeW777]

Your questions and answers are as follows:

• Correct me if I am wrong, but since I plan to retire and sell my business in 2024 and all equipment with it, there is no need to enter all that prior cost basis/ deprec. into my 2020 TurboTax software history. I will not be selling the equipment off individually, so do not need to associate prior cost basis, etc.
  • Any asset that is fully depreciated does not need to be entered on your 2020 return, however you will need to account for them ii the sale.  Each will have a zero cost basis but will have a selling price assigned to it.  The selling price and selling expenses must be prorated for each asset that is part of the sale.  You can prepare for that now by figuring out the percentage of each asset.
• The only two current Depreciation carrying forward items into my 2021, 22, 23 & 24 returns will be:
  • If the home office is the only depreciable asset at this time, then yes, you will complete that in the home office section.
  • As far as the loan cost you can enter that under 'Other' expenses and use the label of 'Amortization of Loan Cost' or use the steps below which will carry it to the same location:

1. Sign into your TurboTax Account > Search (upper right) > Type rentals > Press enter > Click on the Jump to .... Link
2. Edit beside the rental you want to work on > Scroll to Assets > Edit
3. Select Yes to go directly to the asset summary >
4. Add or Edit the asset for the loan refinance costs > Select Intangibles, Other Property > Continue
5. Select Amortizable intangibles > Continue > Enter the details about your costs including the refinance date
6. Continue > Select the Code Section 163 for loan fees > Enter the useful life (number of months of the loan)
7. The final screen will show the deduction.  

@davekro