turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

snappson
New Member

Depreciating an asset for real estate business not associated with any single property

I have an LLC used for real estate activities which include buying & selling properties and well as some buy and hold for rentals. I assume this single member LLC will need to be documented via schedule E as I do not qualify as a real estate professional. 

 

My question is where do I record depreciable assets that are not linked to any single property? I purchased a tractor in 2022 to work on some vacant land i purchased to develop. In early 2023, I sold this same property but I kept the tractor to use on other properties. I will be able to depreciate 1/5 of the purchase price in 2022 if I link it to the vacant land, but in 2023 when I show selling that vacant land, how do I keep depreciating the tractor? Where do I capture this in Turbo Tax self employed?

3 Replies
Carl
Level 15

Depreciating an asset for real estate business not associated with any single property

Assuming you use SCH C for reporting the buying/selling of real estate that is not held for rental, the tractor would be a SCH C equipment asset depreciated over 5 years.

 

snappson
New Member

Depreciating an asset for real estate business not associated with any single property

So my real estate LLC would be on schedule E AND schedule C? The vacant land was purchased to rent out but I never had any interest and ultimately sold it for a profit. The tractor was used to clear and maintain the property but it was also used on other properties that I bought and held to rent out. Those are all on schedule E. I just don't know how to add this tractor asset to Schedule E without attaching it to a single property. 

Carl
Level 15

Depreciating an asset for real estate business not associated with any single property

So my real estate LLC would be on schedule E AND schedule C?

No. Rental property is on SCH E.  Property that you buy, hold and flip is SCH C.

 

Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing

Related Content

Manage cookies