MCARS depreciation on broken appliances that need to be replaced in the final year of depreciation.

[max]

I have been using the MCARS depreciation on a couple of Kitchen appliances since 2016.  They broke last year and had to be replaced.  I had one more year of depreciation to go  - one in the amount of 114 and one in the amount of 75.  Do I just delete these items from Assets / Depreciation section or leave them to be depreciated for the last year ?

I purchased new appliances to replace these last year.

[ColeenD3]

Continue the depreciation until the time they became unusable. Then convert them to personal use so the depreciation stop. Next year, you can delete them. Then add the new assets and begin the depreciation for them.

[Carl]

Work through each of those assets one at a time. Select YES on the screen for "Did you stop using this asset in 2021?".  On the "Special Handling Required?" screen, read the small print so you understand why I am telling you to click YES. Then click YES. The asset must remain on your 2021 tax return in order to show that you removed the item from service. This also stops depreciation on the asset.

You can then delete the asset from your return *NEXT YEAR* on your 2022 return. You can not delete the asset from your 2021 tax return.

[Carl]

@max now that you've got my previous post in this thread, I"m not 100% sure, but I "think" that whatever depreciation was remaining to be taken on the asset after it was removed from service because it broke, or was thrown away, can be deducted as a miscellaneous rental expense on the 2021 tax return. Take note that your reason for disposition of the asset has to be something like lost, stolen, disposed of, etc. In other words, you did not remove it for personal use, give it away as a gift, sell it to a scrap yard, or trade it for any type of compensation in return.