Carl
Level 15

Investors & landlords

You can't show any asset disposed of in 2019, on a 2020 tax return.

One thing you can do assuming you did not sell it and the asset is fully depreciated, is just show it's disposition on 1/1/2020 and make sure you:

1) Read the screen that asks you if "Special Handling Required?" so you will understand why I am telling you to click YES on that screen, then,

2) Click YES on that screen. That pretty much does it, assuming you either threw it in the garbage or gave it away for no compensation.

Then the 2020 tax return will be the last year that asset will appear in the Assets/Depreciation section. However, if it does get imported into the 2021 return, that only happens for either of two reasons.

a) You did not completely finish the disposition of that asset on the 2020 return (possible, but not common) or,

b) The program imported it when it should not have. (very common in my limited experience with this when dealing with disposed of assets.)

Overall, either way you can just delete the asset from the 2021 return if it gets imported after reporting it's disposition on the 2020 tax return.