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Level 2
posted Feb 14, 2022 7:45:21 AM

Rental Appliance Depreciation Calculation

When adding an appliance to a rental and depreciating using 200% DB switching to S/L, Half year conventional with recovery period 5 years:

For first year sometimes TurboTax Business gives the depreciation using 5% instead of 20% from Table A on GDS. It doesn't do this every time and when it does we can't over-ride. For all our assets we decline the Special Depreciation Allowance option. How do we get TurboTax to use the Table A percentages.

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1 Best answer
Expert Alumni
Feb 14, 2022 7:54:03 AM

When did you place the asset in service? If it was in the last quarter, you are required to use the mid-quarter convention. For 5-year property, you only get 5% the first year. However, you will make it up in future years. Year two gives you 38%.

 

1 Replies
Expert Alumni
Feb 14, 2022 7:54:03 AM

When did you place the asset in service? If it was in the last quarter, you are required to use the mid-quarter convention. For 5-year property, you only get 5% the first year. However, you will make it up in future years. Year two gives you 38%.