Depreciation calculation error?

[dgd2000]

The 2022 depreciation for a piece of business equipment seems to be calculated incorrectly by TurboTax 2022 Home and Business. It is a 7-year life item using the 200DB/MQ method. According to several online depreciation calculators I've tried, the 2022 depreciation should be $1,036. Instead, TurboTax shows $1,262. I used TurboTax in previous years (2017-2021) and all of those calculations were correct (compared to the online calculators for double-declining balance depreciation). I've attached screenshots below that show the 2022 TurboTax entries and results. The $10,232 prior depreciation calculation is correct.

Please let me know if I'm missing something or if there is a bug in the calculation made by TurboTax. Thanks!

[Carl]

Per IRS Pub 946 at https://www.irs.gov/pub/irs-pdf/p946.pdf table A-5 on page 71 is used since the asset was placed in service in the 4th quarter of 2017.  Since 2022 is the 6th year, row 6 applies. Under 7 year property that's 8.73% times the cost basis of $14,450 which is $1261.48. Since the program rounds up to the next dollar that makes your 2022 depreciation $1262.00. The program is correct. So if there's a bug anywhere, it's in all the on-line calculators you are using, which is really no surprise.

[Anonymous_]

Looks correct, @dgd2000 (,0873 x 14,450):

[AnnetteB6]

Based on my calculations (along with Carl and tagteam) and the depreciation table in the IRS Publication 946, the TurboTax calculation is correct.

Your equipment is in the sixth year of depreciation and was placed in service during the 4th quarter.  Therefore, based on the depreciation table in the screenshot below, the percentage to use is 8.73%.

For your reference, the depreciation tables are found toward the end of the document:  IRS Publication 946

See the picture below for the table used for your mid-quarter convention, 4th quarter placed in service asset:

@dgd2000 

[dgd2000]

Thanks so much for your prompt response, Carl! I should have checked the IRS publication first, rather than using the online calculators. Those calculators were correct for years 1-5, but year 6 was incorrect. 

Next time, I'll go directly to the source (IRS publication), rather than trusting financial calculators on the internet!

Have a great day, knowing that you helped a TurboTax user sleep well tonight!

dgd2000

[dgd2000]

Thanks so much for your prompt response! I should have checked the IRS publication first, rather than using the online calculators. Those calculators were correct for years 1-5, but year 6 was incorrect. 

Next time, I'll go directly to the source (IRS publication), rather than trusting financial calculators on the internet!

Have a great day, knowing that you helped a TurboTax user sleep well tonight!

dgd2000

[dgd2000]

Thanks so much for your prompt response, Annette! I should have checked the IRS publication first, rather than using the online calculators. Those calculators were correct for years 1-5, but year 6 was incorrect. 

Next time, I'll go directly to the source (IRS publication), rather than trusting financial calculators on the internet!

Have a great day, knowing that you helped a TurboTax user sleep well tonight!

dgd2000