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How to change HVAC depreciation years and amounts

So, I didn't know a HVAC replacement was supposed to be depreciated. I was audited last year for 2021 and 2022 taxes and got it all sorted out. 

 However, the IRS auditor provided me a schedule of how much to depreciate each year for it over 8 years, with this being year 3 (they fixed the 1st and 2nd year with with the audit). 

  The link below is for a picture of the depreciation schedule from the IRS auditor.

 

 I need to add this into my rental property info, but it automatically does an amount for 5 years and won't let me change the years or dollars.  How can I change the info in TurboTax to claim the right amount of depreciation this year per the auditors schedule?

 

https://drive.google.com/file/d/1PpdwAC43ImIL6BNi6_AfgICYxv_a_jxG/view?usp=sharing

 

Thank you

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1 Best answer

Accepted Solutions
DianeW777
Expert Alumni

How to change HVAC depreciation years and amounts

This will be a simple asset selection for you to arrive at the correct depreciation method and expense.  Although this appears to be eight year property, it's actually seven year property.  It just takes eight years to utilize the full amount of depreciation.

 

When you are signed into your tax return follow the steps below. 

  • Search (upper right) > Type rentals > Click the Jump to... link
  • Edit next to your rental property
  • Click on Assets > Add an asset
  • Select 'Tools, Machinery, Equipment, Furniture' for the type of asset (7 year property)
  • Select 'General purpose tools, machinery and equipment'
  • Describe your asset, enter the cost and date acquired > Continue > Select 'I purchased this asset'
  • Yes, always used 100% business > Continue past Section 179 > Select 'I used the half year convention
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2 Replies
DianeW777
Expert Alumni

How to change HVAC depreciation years and amounts

This will be a simple asset selection for you to arrive at the correct depreciation method and expense.  Although this appears to be eight year property, it's actually seven year property.  It just takes eight years to utilize the full amount of depreciation.

 

When you are signed into your tax return follow the steps below. 

  • Search (upper right) > Type rentals > Click the Jump to... link
  • Edit next to your rental property
  • Click on Assets > Add an asset
  • Select 'Tools, Machinery, Equipment, Furniture' for the type of asset (7 year property)
  • Select 'General purpose tools, machinery and equipment'
  • Describe your asset, enter the cost and date acquired > Continue > Select 'I purchased this asset'
  • Yes, always used 100% business > Continue past Section 179 > Select 'I used the half year convention
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

How to change HVAC depreciation years and amounts

Thank you for your help Diane!  That worked great.

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