Taking business asset out of service.

kristinelise57 · ‎January 25, 2023

I have several business assets that I have taken out of service but not sold. I have made the appropriate selections in TT to indicate this, but TT still lists these assets on form 4562, and I don't see any indication that they are no longer used in the business. Am I now supposed to just delete them from my assets page? But then how does the IRS know that they have been taken out of service?

AliciaP1 · ‎January 25, 2023

Yes, you can delete the out-of-service assets if they were fully depreciated in a prior year before they were removed. If they were not fully depreciated then you will need to dispose of the assets in TurboTax. You indicate that you marked all the correct boxes to show you retired the assets in 2022. The assets will still show on your return for the year they were retired but will fall off your reporting for the next year.

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AliciaP1 · ‎January 25, 2023

Yes, you can delete the out-of-service assets if they were fully depreciated in a prior year before they were removed. If they were not fully depreciated then you will need to dispose of the assets in TurboTax. You indicate that you marked all the correct boxes to show you retired the assets in 2022. The assets will still show on your return for the year they were retired but will fall off your reporting for the next year.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

kristinelise57 · ‎January 25, 2023

Thank you so much for your prompt and helpful reply.

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Taking business asset out of service.