Deductions & credits


@mrmoppel wrote:

I've stumbled upon 26 CFR § 1.168(i)-4 - Changes in use and found mentions (from chat bots that I don't necessarily trust)

 

That Regulation does not apply to your situation.

 

By default, TurboTax calculates depreciation using the 'mathematical' method, rather than using the "tables". If I remember correctly, the ORDER of the math calculations are bit unclear for how to do that.  The order that TurboTax (and several other brands of software) use results in those weird depreciation amounts when the business percentage changes.  I really don't know if that is a correct way or not due to the unclarity of how the order of math calculations should be done.

 

You aren't supposed to change things mid-stride like this, but if you have the CD/downloaded desktop version of TurboTax, you can go into the "Forms" mode to access the Asset Entry Wks.  When you are on that worksheet, you can scroll WAY down to the bottom and there should be a checkbox to 'Use the Tables'.  That could result in more traditional depreciation, rather than the weird results that you are seeing.  But as I said before, you are not supposed to change things after you have already been depreciating it for a while.