I am entering a rental fixed asset purchased in 2018. I took the bonus depreciation in 2018. It is not giving me the option to enter prior bonus depr. What do I do?

[Anonymous · Accepted solution]

you'll need to go into the asset entry worksheet for the asset. enter the prior bonus on line 9 and the balance of any other depreciation taken on it in 2018 on line 10. 

[Carl]

Note that long term residential rental real estate assets do not qualify for the SEC179 deduction. However, some such asset classes can qualify for the special depreciation allowance. If you took it last year, then obviously you wouldn't be asked about it this year, but rest assured if you did it correctly in 2018, then it is there in your 2019 taxes already. There's two places to check this.

- After working through the asset, on the last screen click the checkbox next to "details" to show the details. I'm not sure if it will show the SDA there or not, but I would expect it to.

- After you have completed *ALL* rental properties and have left the rental section entirely, you can look at the IRS Form 4562 titled "Depreciation and Amortization Report" for that property and it "should" be shown in the "Special Depreciation Allowance" option.  It will not be on the 4562 titled "Alternative Minimum Tax Depreciation".

[djbrg1]

Thanks Carl. Unfortuantely, that didn't work... There is nowhere for me to edit the amount of SDA; and as I walk through the 4562 it does not ask me if I've taken SDA in a prior year. 

Again, this is my first year using TurboTax - I'm switching from TaxAct.  So far, it appears to be an issue for assets purchased and placed in service in 2018.  I have been able to enter SDA for assets purchased prior to 2018...HELP! It's driving me crazy!

[djbrg1]

TurboTax isn't giving me the option to enter it... Any other ideas? I hate that you can't contact them for tech support.  This is my first year using them-switching from TaxAct.  They have tech support you can call and ask questions like these...

[DoninGA]

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@djbrg1 wrote:

TurboTax isn't giving me the option to enter it... Any other ideas? I hate that you can't contact them for tech support.  This is my first year using them-switching from TaxAct.  They have tech support you can call and ask questions like these...

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See this TurboTax support FAQ on how to contact Support - https://ttlc.intuit.com/questions/3401489

Or - 

Use this website to contact TurboTax support during business hours - https://support.turbotax.intuit.com/contact/

Or - 

Support can also be reached by messaging them on these pages https://www.facebook.com/turbotax/ and https://twitter.com/TeamTurboTax

Or -

Use this phone number and select TurboTax - 1-800-4-INTUIT (1-800-446-8848)

Or -

On any TurboTax web page, including this one, click on Contact us at the bottom of the page.

[djbrg1]

I will try that...so you don't have any ideas as to how to enter the bonus deprecation for assets placed in service in 2018?  It almost sounds like a glitch in their program??? 

I messaged them on Facebook.

I tried submitting the question online (so as to get a phone number to call for support), but the message I got in response said the wait time would be 45 minutes....ugh

[Carl]

Something has occured to me whereas your post now doesn't make sense to me.
If you purchased the property in 2018 and of course entered as rental property on your 2018 tax return, what *exactly* is the asset you're taking bonus depreciation on?

Also, if when you started your 2019 tax return, if you imported from your 2018 tax file then the program already has any bonus depreciation claimed in 2018, and you don't need to enter it again.

But if you purchased the property in 2018, started renting it out in 2018, then what is it exactly you took bonus depreciation on? I ask, because for rental property, especially in it's first year, taking bonus depreciation on anything will not make (in most cases) one single penny of difference on your tax liability in that first year. Especially since rental property almost always operates at a loss "on paper" at tax time anyway. (Especially if there's a mortgage on the property.)