Now the asset is shown in the "Asset Entry Worksheet" as "sold, given away or abandoned" on the date I entered (TurboTax accepted only a date in 2022),
That's correct. In order to show it's disposition in 2021, you'd have to amend the 2021 tax return. In my opinion (and we all know what opinions are like), why bother?
and is still present in Form 4562 (Depreciation and Amortization Report).
That to is correct, because of the way the MACRS tables are set up by the IRS. For example, if the asset used the mid-month convention and you showed disposition of the asset for any specific day in January 2022, then depreciation stopped on Jan 15th. Therefore, you have a "little bit" of depreciation shown. Otherwise, if the asset way already fully depreciated in a prior year, then obviously it shows no depreciation for the current year.
Now if this asset was disposed of by any means other than selling it, then 2022 will be the last year the asset will (should) appear on the 4562.
Note also in a case of where you removed the asset for personal use, that's "kinda-sorta" not really disposing of it. For example, if you removed a stove from the rental for personal use and installed it in your house, that's not really disposing of it. It's just "removing it for your own personal use". So if later you were to sell that stove, you'd have to subtract the depreciation taken on it in the past from what you originally paid for it. Then if you sold it for more than that, you'd have a taxable gain to report.
Now admittedly so, the IRS doesn't know "how" you disposed of an asset, or if you really did actually "dispose" of it. But still, one has to take care and use common sense. Here's an example.
You put a new roof on the house back in 1996. Here it's now 2023 and you're doing your 2022 taxes. That roof would be fully depreciated. You can't just "delete it" per-se. Well, you can. But if you do and you don't show a new roof as a new asset installed in 2022, I would expect that to raise a few eyebrows. Don't know for a fact that it would. But I would defintely expect it to at some point.
