The rule is the lower (price) of (original) cost or FMV so that is why you would not use the value of a new one even though you would to depreciate it the full 5 years.
When TurboTax suggests listing this as an expense rather than an asset to be depreciated, it is because the FMV is less than $2,500. This is the generally accepted threshold for capitalizing and depreciating assets. You are allowed to handle the asset either way without raising any flags. If you have higher income for the year, you may want to expense the whole amount. Even if you don't, you may want to expense the whole amount just to avoid the depreciation hassle going forward. In this case, how you treat it is your choice.
@ndc24075
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
