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pappasttax
New Member

We were renting from ourselves and closed the business in 2015.. How do I move an asset from Schedule C to Schedule E effective 1/1/2016?

We ran a restaurant in a building we own.  We were required to install a large grease trap after we closed our business in order to lease the restaurant to a new operator.  The asset was listed in my schedule C but I would like to move the asset to my Schedule E effective 1/1/2016 in order to continue the asset depreciation.  I am not sure how to move the asset in Turbo Tax.

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Accepted Solutions
PatriciaV
Employee Tax Expert

We were renting from ourselves and closed the business in 2015.. How do I move an asset from Schedule C to Schedule E effective 1/1/2016?

Unfortunately, TurboTax does not have the option to move the asset from Schedule C (an active business) to Schedule E (a passive activity).

Instead, report that you converted the asset to personal 100% use (this generates no gain or loss) for Schedule C. This option appears in the page "Special Handling Required?" during the property interview.

You may also need to delete Schedule C and other related worksheets from your return if the business terminated in 2015. (In TurboTax desktop, go to Forms, open the worksheet, and click "Delete Form" at the bottom of the screen.)

Then, add the property as a Rental Asset, including the accumulated depreciation already taken. This will correctly set up the asset for depreciation for the rental activity.

Any repairs or improvements to the property before you began renting it would be added to your basis or entered as a separate Rental Asset.

View solution in original post

1 Reply
PatriciaV
Employee Tax Expert

We were renting from ourselves and closed the business in 2015.. How do I move an asset from Schedule C to Schedule E effective 1/1/2016?

Unfortunately, TurboTax does not have the option to move the asset from Schedule C (an active business) to Schedule E (a passive activity).

Instead, report that you converted the asset to personal 100% use (this generates no gain or loss) for Schedule C. This option appears in the page "Special Handling Required?" during the property interview.

You may also need to delete Schedule C and other related worksheets from your return if the business terminated in 2015. (In TurboTax desktop, go to Forms, open the worksheet, and click "Delete Form" at the bottom of the screen.)

Then, add the property as a Rental Asset, including the accumulated depreciation already taken. This will correctly set up the asset for depreciation for the rental activity.

Any repairs or improvements to the property before you began renting it would be added to your basis or entered as a separate Rental Asset.

View solution in original post

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