You can review the difference between MACRS and straight-line depreciation in IRS Pub 946 Appendix A.
Because most business property is depreciated with MACRS, that's the method that TurboTax applies by default. However, you can apply straight-line depreciation if you want. In fact, straight-line is the only option available for intangible assets, which can't use MACRS nor Section 179.
If you opt for straight-line depreciation:
- It must be applied to all your assets in the same class
- You must continue to use straight-line depreciation for the life of the asset; you can't switch to MACRS in the future
Caution: Switching to straight-line depreciation requires a comprehensive knowledge of depreciation methods, asset classes, and recovery periods. Even tax experts can get confused. For this reason, we advise against switching unless you are absolutely sure you know what you're doing.
If you decide to use straight-line depreciation, you will need to add the asset with a class of "other" and enter the variables manually.
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