Issue selecting depreciation method

Forum|Forum|2 months ago
April 8, 2026
2 replies
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I am using TurboTax Business Desktop to prepare an 1120S (not a first year business). The prior preparer set some assets up as S/L HY. Since this is the first year I am preparing the return in TurboTax Business I need to add the assets to the system. The system is calculating the assets using 200DB HY. Since the company started with S/L we cannot switch. How can I make Turbo Tax adopt a the S/L HY method?

Ask the Experts - Finish - April 2026

DawnC

Level 15

Use the Asset Entry Worksheet in Forms Mode to enter or correct depreciation details, including convention/method behavior.

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dpslaterAuthor

Level 2

Thank you!!!

Mike9241

Level 15

it would seem your prior accountant used the ads system (maybe) since we don't know what these assets are or anything about them, like % business use

in the asset information section for each asset, enter the prior regular and AMT depreciation. This is necessary so current and future depreciation are computed correctly in Turbotax, and if disposed of before being fully deprecited, the proper gain or loss is computed

in forms mode under the Detail Asset Information assumes ADS is proper

Regular Depreciation Type =NP

Depreciation Methos =SL

Recovery Period - see ads list below

also you need to enter the AMT life under the ADS system

Property
Recovery
Period
Rent-to-own property . . . . . . . . . . . . . . . . 4 years
Automobiles and light duty trucks . . . . . . . 5 years
Computers and peripheral equipment . . . . 5 years
High technology telephone station
equipment installed on customer
premises . . . . . . . . . . . . . . . . . . . . . . . . 5 years
High technology medical equipment . . . . . 5 years
Non-commercial aircraft . . . . . . . . . . . . . . 6 years
Personal property with no class life . . . . . . 12 years
Commercial aircraft . . . . . . . . . . . . . . . . . . 12 years
Natural gas gathering lines . . . . . . . . . . . . 14 years
Single-purpose agricultural and
horticultural structures . . . . . . . . . . . . . . 15 years
Any tree or vine bearing fruits or nuts . . . . 20 years
Initial clearing and grading land
improvements for gas utility property . . . 20 years
Initial clearing and grading land
improvements for electric utility
transmission and distribution plants . . . 25 years
Electric transmission property used in the
transmission at 69 or more kilovolts of
electricity . . . . . . . . . . . . . . . . . . . . . . . . 30 years
Natural gas distribution lines . . . . . . . . . . . 35 years
Nonresidential real property . . . . . . . . . . . 40 years
Residential rental property . . . . . . . . . . . . 30 years1
Section 1245 real property not listed in
Appendix B. . . . . . . . . . . . . . . . . . . . . . 40 year