On assets and depreciation. we need to change the depreciation method for one item. how is this done?

[mot2591]

Form 4562.  line 19b  is what we need for one of our assets to depreciate correctly.   How do we find this.   The program has the depreciation method as 150DB and 15years but previous year it was at 200DB and 5 years.

[AmeliesUncle]

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@mot2591 wrote:
Form 4562.  line 19b  is what we need for one of our assets to depreciate correctly.   How do we find this.   The program has the depreciation method as 150DB and 15years but previous year it was at 200DB and 5 years.

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If it was depreciated in a previous year, you won't see it on Line 19 of Form 4562 this year.

Did you used TurboTax that previous year and import the information?  Or are you entering it anew?

You need to determine which method is correct.  You can't just use what was done in the previous year if it was incorrect.

What EXACTLY is the asset?  How is it used?  What type of business?  When date was it "placed in service"?  The more details you can provide, the more likely we can figure it out.

[Carl]

If 2019 is *not* the first year of depreciation on the asset, you can not just arbitrarily change it without raising eyebrows that will practically guarantee an audit. So you need to provide details on.

- Precisely what the asset is

- What tax year it was placed in service

- Why you need to change it now.

If the asset was incorrectly depreciated in prior years, then you can't use TurboTax to "fix" the problem. The program just isn't designed for that.

But if 2019 is the first year you are using Turbotax and prior years the depreciation was correct, how you fix it in turbotax depends on what the asset is and on what SCH  you're reporting the asset. SCH C, SCH E, or SCH F.

[Anonymous]

 @Carl.    agree just changing after the first year without filing 3115 or amending returns isn't right.  The taxpayer also faces an issue of TT correctly computing current and future depr if the method or life is changed.  in the world I come from, have been employed by several big CPA firms ( both for over 20 years each) and after retirement as an IC for some smaller ones they just do the change without amending and no 3115.  in over 50 years never once has a client been audited for doing this.  Maybe those clients were just lucky.