Cannot select "Mid-Quarter" (MQ) Convention for rental appliance

[paulvas]

I am using TurboTax Online Premium. I am moving my rental property (Schedule E) data from TaxAct into TurboTax and I am unable to correctly enter a 5-year asset that requires the Mid-Quarter (MQ) Convention.

The Asset Details:

• Item: Dishwasher

• Acquired/Placed in Service: 12/03/2022

• Cost Basis: $398

• Prior Depreciation taken through 2024: $262 (verified from my 2024 Form 4562)

• Required 2025 Deduction: $54 (based on 5-year MACRS 200DB MQ table)

The Issue: Because the asset was placed in service in December, it must stay on the MQ convention. However, I cannot find the "Convention" toggle in the standard "Appliances" workflow.

When I try to use the "Other Property" path to find more manual settings, TurboTax keeps routing me into the "Amortizable Intangibles" workflow.

• Even if I bypass the "Code Section" requirement, the software defaults to Straight-Line Amortization and calculates $80 ($398 / 5 years).

• It is treating a physical dishwasher as an intangible asset, which is causing an incorrect calculation.

My Question: How can I access the manual MACRS Depreciation screen to select Mid-Quarter (MQ) and the 200DB method for a physical asset without being forced into the Amortization/Intangible workflow? I need the software to calculate the $54 deduction to match my existing IRS depreciation schedule.

Is there a specific "Description" or "Category" that unlocks the MACRS Convention dropdown for an existing asset?

[AmyC]

Follow these steps:

1. Delete the asset as you have it entered
2. Go to the Asset Summary screen for your rental.
3. Select Add an Asset.
4. When asked for the category, select Tools, Machinery, Equipment, Furniture.
5. On the next screen, select Appliances, Furniture, Equipment (5-year).
6. When it asks "Tell Us About This Asset," enter the name (Dishwasher), the cost, and the date.
7. Check the box, I purchased this asset
8. Check, Yes, 100% for business, enter date used - probably 12/3/2022
9. Select mid-quarter convention
10. Confirm Prior Depreciation - pulling up $202 for me as I did not include any sec 179 or bonus depreciation.
11. Enter your $262 in the "Prior Depreciation" box and the same for AMT unless you have a different amount.

Your date of 12/3/22 forces the program to recognize that more than 40% of the asset was place in service in Q4 to trigger the MQ convention. If you only have this asset and the program is forcing you to half-year or straight line, you will again need to delete the asset and choose equipment.

[paulvas]

Thank you Amy for your response. Unfortunately that's not options I see in Do It Yourself Premium Web version:

1. When asked for the category, select Tools, Machinery, Equipment, Furniture.

I have "Tools, Machinery, furniture"

2. On the next screen, select Appliances, Furniture, Equipment (5-year)

There is no "next screen". There is drop down on the same screen "Office, furniture and appliances"

3. When it asks "Tell Us About This Asset," enter the name (Dishwasher), the cost, and the date.

That's on the 1st screen

4. Check the box, I purchased this asset

There is no such checkbox

5. Check, Yes, 100% for business, enter date used - probably 12/3/2022

Yes, that's what I select on the initial screen

6. Select mid-quarter convention

That's not an option on any screens I get.

Next I see following screens:

Screen 2:

Screen 3:

Question whether I claims Section 179 deduction, which I answer "No"

Screen 4:

Question about Special depreciation deduction allowance, which I answer "No"

Screen 5 with incorrect calculation:

I tried correcting value here to $262.

On final review screen amount is incorrect.

[AmyC]

You got the correct $39 depreciation! Great job. Your return is correct. Give me a minute to upload mine with the MQ selected.

[paulvas]

I noticed you have 7-year depreciation, while I had 5-year for previous year in TaxACT. Does it make difference?

[AmyC]

Oh!  Great catch. No, it is a 5 year property and I am not able to get that. Let's back up. $368 paid 12/3/2022 using 200% declining balance MQ

2022 $20 dep

2023 $151

2024 $91

total depreciation to date is $262

2025 $55 dep

2026 $44 dep

2027 $38 dep

I tend to use the desktop and got bad information. I have premium online and see the MQ is not available and it gave me 7 years as well.

I am going to look around and see what else I can find. Hold off and check back in a couple days.