Carl
Level 15

Investors & landlords

Your previous CPA did it wrong, for reasons I mentioned earlier in this thread. Overall, I would not change it though, unless I get questioned on it by the IRS. Chances of that happening while not zero, are slim if there's nothing else that "stands out" like a sore thumb on your tax return.

To enter it, in the assets/depreciation section select Add an Asset.

Then select Intangibles, Other Property and continue.

Select Other Asset Type, and continue.

Enter the information requested. I.e., the property is "Windows", the cost is $10,000 and the date purchased or acquired is 2/10/2015. Then continue.

Select "I purchased this asset" and select "yes, used 100% for business". The start date you started using it in this business will be 2/10/2015. Then continue.

For asset class, select 10 year and continue.

Select "I used the half year convention" and continue. (Your image shows HY, so that's half year convention)

Depreciation method is Straight Line, then continue.

On the Recovery Period screen, it shows 10 years. Click continue.

On the Listed Property screen, click NO.

On the "Did you take the special depreciation allowance?" screen, click YES. Below that you should see where it says the program has figured $5000 for your allowance. If that's what it says, leave the box blank and continue. If it says anything other than $5000, then enter $5000 in the box, and continue.

On the "confirm your prior depreciation" screen, it should show $3250. But from what I see on your screen shot from your 2021 tax return, it shows a total of $2000. $1500 for 2020 and before, plus $500 for 2021. So for 2022 that gives you $2000 of prior depreciation already taken.

So if the total depreciation taken up to and including 2021 is really $2000, change the amount in the box from the default of $3250, to $2000. Then continue.

That gives you $857 of depreciation on the windows for 2022.

@Anonymous_ please check my math on this. I know it's not IAW what should have been done from the start, and what should be done now (the IRS Form 3115). But notwithstanding, is my math right?