In 2020 I had solar panels installed on my home. My home office is in my home, taking up 11% of the area.
According to what I have read from the IRS, the solar panels should be either depreciated over 5 years, or I can deduct the full amount (which I understand is only 87% - 100% minus half the current year tax credit of 26%).
When I enter the solar panels in the business deduction section under assets, it automatically makes it depreciated over 39 years. I tried to go into the depreciation chart and override to 5 years, but it won't let me.
A post from 2019 from Marilyn G in the turbotax forum says to....
If it is a business property on Schedule C, you can add it as a business asset under Business Expenses (screenshot). Answer Yes to improvements made to a building used for business.
You will then come to a screen stating that you may be able to take the improvements as an expense if you qualify (screenshot). It not, select 'Intangibles, Other Property' as type of asset, and Other Asset Type.
For Asset Class, choose 5-year from the dropdown menu (screenshot).
I am unable to do this, as there is no drop down menu.
I go to Business Expenses/Home Office Expense/Home Office Asset Summary
select improvement to your home
enter in my information and the cost and the date
confirm the business use percentage
There is NO way for me to adjust the Asset Class.
I'd appreciate some help because I am stuck.
