No, I have not always used this item 100% of the time for this business.", "I first used this item at least part of the time for this business, and also used it for personal purposes.", put in a date (12/1/18)........ I tried plugging in "0" % business use and TT doesn't allow "0" %; must be 1.00% or greater.
It did add all 4 items to Form 4562, increased my basis, etc. (Concrete siding was so expensive, that it did put in a $2 "current depreciation", even on a 27.5 year schedule.) So, it had the desired effect.
Actually, I'm fairly certain for business use percentage you can enter less than 1%. Say, 0.1% for example. But overall who cares about $1-2 dollars of depreciation really?
Still puzzled by the land improvement designation for the tree removal; why does TT put it on a 15 year depreciation
Personally, if the cost of that was less than $2,500 I'd just expense it and call it a day. Remember, in the year you sell the rental property all losses carried forward are not limited to being deducted from rental income. All your losses are deductible in the year you sell, as follows:
- First, they are deducted from the passive income. Then if there's still losses to deduct;
- They are deducted from any capital gain realized on the sale. If there's still losses to deduct;
- They can all be deducted from "other" ordinary income (such as W-2 income) up to a limit.
If after all that you still have losses to deduct, they are carried forward to the next year where they are deducted from ordinary income. If limits are still in place, they just carry forward until all used up.
