TurboTax product: Home and Business (download)
In 2020, we purchased a piece of equipment for sole-proprietorship business (filing Schedule C). This equipment qualifies for the Disabled Access Credit (form 8826, the credit of which carries over to Form 3800, General Business Credit). My question relates to the asset entry in TurboTax H&B when I will be claiming both the maximum disabled access credit of $5,000 and expensing the remaining cost as a Section 179 deduction, so that TurboTax does not calculate depreciation on the asset in future tax years.
Here's the Scenario:
Asset purchase cost: $11,641
Disabled access credit: $5,000 (via form 8826 and 3800)
Section 179 deduction: $6,641
When I enter the entry of the asset in TurboTax, do I enter the purchase price of $11,641 as the cost and the indicate that I am only taking $6,641 as Section 179 deduction? If so -- will TurboTax then calculate an annual depreciation amount on the remaining $5,000 in future tax years (i.e. 2021, 2022, etc. -- which would not be appropriate) OR ---- Do I enter the asset purchase price in TurboTax as only $6,641?
