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mjacquez83
New Member

How do I enter a rental asset that had been depreciated and was disposed in 2019?

I get to the question which asks if 'the item was sold, retired, disposed of...'.  I check the box and have to enter the date it was retired from use.  However, if I enter a date from 2019, it gives me an error.  I didn't do my tax form through TT in 2019 so it didn't carry over a record from that tax year.
3 Replies
GeorgeDenseff
Level 8

How do I enter a rental asset that had been depreciated and was disposed in 2019?

Do not enter an asset that was disposed of in 2019 into your 2020 tax return.  Keep a record of that with your bookkeeping records.

Carl
Level 15

How do I enter a rental asset that had been depreciated and was disposed in 2019?

You can't show any asset disposed of in 2019, on a 2020 tax return.

One thing you can do assuming you did not sell it and the asset is fully depreciated, is just show it's disposition on 1/1/2020 and make sure you:

1) Read the screen that asks you if "Special Handling Required?" so you will understand why I am telling you to click YES on that screen, then,

2) Click YES on that screen. That pretty much does it, assuming you either threw it in the garbage or gave it away for no compensation.

Then the 2020 tax return will be the last year that asset will appear in the Assets/Depreciation section. However, if it does get imported into the 2021 return, that only happens for either of two reasons.

a) You did not completely finish the disposition of that asset on the 2020 return (possible, but not common) or,

b) The program imported it when it should not have. (very common in my limited experience with this when dealing with disposed of assets.)

Overall, either way you can just delete the asset from the 2021 return if it gets imported after reporting it's disposition on the 2020 tax return.

 

VolvoGirl
Level 15

How do I enter a rental asset that had been depreciated and was disposed in 2019?

If you didn't use Turbo Tax for 2019 then how did it transfer to 2020?   You should not have transferred from Turbo Tax or you should have transferred from the program you did use.  Did you file a 2019 return?  

I think you should start 2020 over and NOT transfer anything.   Who knows what else got transferred and would be wrong.  

There is a tricky way to clear out transferred info in the Online version.  But doing this will also clear out all your entries.  Go to Tax Tools > Tools > Transfer from your computer > Continue > then Continue without transferring.

 

Or you can just start a brand new account with a new username.  How to start another return in the Online version

https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-start-another-return-in-turbotax-onli...

 

 

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