Unable ot input prior year special depreciation

[michinori-kaneko]

Hello, 

I had a tax accountant filing my return until last year, but cost increased signficantly so filing my own tax return this year.  There are several assets that were places in past few years where my CPA has taken bonus depreciations, but turbotax does not give me the option to input this figure.  For instance, I had an appliances that I purchased in 2022 for $3600.  I select 5 yr 200DB as depreciation method, but it only asks me for section 179 and depcreciation (excluding 179 and special bonus depreciation) that was claimed in the prior year.  In this instance, in my last year (2023) return i had $0 depreciation for this asset in my federal return but had some portion of it in the state tax return.  It should be the same for 2024.  However, because I am not asked to input the special depreciation I only have two option 1) where I put in $3600 for depreciations taken in the prior year returns (then i get $0 deduction on my state return) or 2) out $3600 in section 179 which then for whatever reason on my state return it deduts $2600 (sum of LTD depreciation that its supposed to have depreciated as opposed to only poriton allocatable to 2024).  I have few of these assets where its not able to calculate it correctly.  Can someone point me to where I can input the special bonus depreciations taken in other years? Thank you 

[PatriciaV]

Special "bonus" depreciation (SDA) and Section 179 deduction are only available in the first year you place an asset into service. After that, the asset is depreciated according to the regular depreciation applicable for that asset type.

If you are entering an existing asset for your business property, you will enter the original cost and the total accumulated depreciation taken as of the prior year, exclusive of special depreciation and Section 179. There may be follow-up questions where you can confirm and/or revise the SDA and Sec 179 taken in prior years. TurboTax uses your entries to calculate the depreciable balance for the asset (the amount subject to further depreciation).

in 2018 - 2022, Special Depreciation was 100%, so it's possible you have assets from those years with zero remaining basis.

[Frustrated2x2]

The tax expert did not answer the question.  I have the same problem entering a prior year special depreciation.  I am using a new computer, so I am entering all the assets I previously reported in prior years.  I have one asset where I took the special depreciation in a prior year.  Since I can't enter it, either I have to show no depreciation previously taken, or record it as a section 179 deduction.  I end up with additional depreciation which I am not entitled to and my Form 4562 for 2024 does not show the Special Depreciation Allowance I took previously.  It would appear that TurboTax did not provide the complete software for this issue and will need a patch allowing for inclusion of prior Special Depreciation Allowance along with the existing Section 179 Depreciation entry line.

[Artnm]

I have the same issue with my rental property and SDA of 100% from 2019 listed on my depreciation and amortization report. Moving from CPA to TT for 2024. Seems that TT is only giving the option for a 179 expense?

[michinori-kaneko]

It appears that when you are preparing federal tax there is no way to do this, so you will have to record the asset and when it asks how much depreciations you have taken in the past to put in the whole asset's cost.  Then when you move onto state return, there is an option to input difference  in state vs federal tax amount, but this does give you option to input asset info one by one, so you basically need to calculate on your own what the difference in depreciation amount is and input it. 

Essentially you would need to research on your own how the asset should be depreciated if no special depreciation was not taken  and calculate how much depreciation you can take on state returns, not optimal for people who have minimal tax knowledge and relying on the software to do this for you. 

[SpokaneLandlord]

I had the same issue while trying to switch from TaxAct and entering assets purchased years ago.  I ended up just entering total previous depreciation (bonus/not 179) plus previous deprecation in the section where they ask for prior depreciation excluding 179 and bonus depreciation.  The calculations were then correct.  However, when I went through the Review process, TurboTax started asking about bonus deprecation and bonus AMT depreciation for each asset.  I started putting in the correct numbers for each asset but now have to go through all the assets again.  I've concluded that while TurboTax is great at importing stock transactions (as long as you use a brokerage that Intuit can import from directly), TaxAct is much better at handling rental properties.  In addition to depreciation being easier to deal with, you don't have to go through question after question to enter your expenses.

[MW771]

• Hi used turbo tax last year took bonus depreciation $54.400 plus regular depreciation $2,720 for a total of $57,120. This year’s taxes it only shows the $2,720 depreciation for prior year but not the bonus. It’s calculating depreciation .on original purchase price 85k  at current usage rate of 87.5% =74,375 5 yrs 200 DB-HY for total depreciation $28,662.?? Prior bonus depreciation It’s not showing on the depreciation work sheet, only  2,720 and nothing else! Please can someone help me! How to enter directly prior year depreciation. I’ve used turbo tax for 10 years. Never encountered a major issue. Sad thing is 4 calls different agents no one knows what to do. Keep referring me to others. Auto is over 6k lbs 

[PatriciaV]

You can revise the entries for Special Depreciation using Forms Mode in TurboTax Desktop.

1. Open your return and click the Forms icon in the TurboTax header. 
2. In the list of Forms in My Return on the left, scroll down and look for Car & Truck Wks under the business for this vehicle. 
3. Click the form name to open it in the large window. 
4. Scroll down to Part VI - Vehicle Depreciation.
5. Use Lines 36(a) and 36(j) to enter the amount of Special Depreciation and AMT Special Depreciation.
6. If any box turns red, click the Errors icon above the list of forms to open a message box below the open form.
7. For additional help on any entry, right-click the box and choose either "Data Source" or "About..."
8. Click Step-by-Step in the header to return to the main screens.

@MW771