Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 3
posted Feb 24, 2023 5:12:54 PM

I added a new asset to an existing rental - can this be right?

I selected 'land improvement' (It's a seawall which I had constructed last fall, and paid upon completion) and TT asked if I wanted to use the 'special depreciation'. I said yes and now the entire amount (somewhat above $25K) can be claimed for 2022. This seems wonderful, but is it legit?

0 1 196
1 Best answer
Expert Alumni
Feb 24, 2023 5:45:32 PM

Yes, the 100% additional first year depreciation deduction was created in 2017 by the Tax Cuts and Jobs Act and generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Machinery, equipment, computers, appliances and furniture generally qualify.

1 Replies
Expert Alumni
Feb 24, 2023 5:45:32 PM

Yes, the 100% additional first year depreciation deduction was created in 2017 by the Tax Cuts and Jobs Act and generally applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Machinery, equipment, computers, appliances and furniture generally qualify.