Since you didn't use TurboTax last year, you will need to add this as a business asset for Schedule C. You'll need the original purchase price and the accumulated depreciation from your prior year return.
TurboTax will calculate the depreciation expense for the current year. And if you continue to use TurboTax, you won't need to enter this asset again. The depreciation percentages you have listed match the IRS table for 5-year assets, which is what you will tell TurboTax to use (see below).
You'll find Assets for Depreciation under your Business Summary after you set up your self-employment business in TurboTax. Follow the interview and let TurboTax guide you through the entries. You might take note of any blue "learn more" links on the entry pages if you need more information.
Here are the suggested answers to these questions:
- Because solar installations are not common, you will need to enter this as "Intangibles, Other property" for the asset category and "other asset type."
- Enter your original purchase price for cost and the date it was placed in service.
- Show that you purchased this asset and have always used it 100% for business.
- Enter the same date that you entered before.
- Choose 5.0 year asset class life, half-year convention, and with 200% declining balance depreciation method.
- It is not "listed property."
- You did not take Section 179, so leave that box blank.
- Enter the amount of depreciation you claimed last year, including special depreciation.
- If necessary, click the "show details" box so you can confirm your entries are what you expect. You should see the current year depreciation you have calculated.
See also: What is depreciation?
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