SFR (residential) Rental property, 5 Yr assets: Why TurboTax limits the 100% Bonus Depr only "if the original use begins with me? a mistake?

[stzobery]

See attached Turbo Tax screenshot. Seems a mistake based on some CPAs responses. You don't need to be the original user (new) to claim 100% bonus depreciation on a 5 yrs assets of residential rental property. Please advise. 

[TaxGuyBill]

Yes, it is a text mistake, but the program still allow it to be taken (a prior question asks if you bought it 'new').

Prior to 2018 (or maybe September 28th, 2017), it had to be 'new', but the new law changed so that 'used' property qualifies.  This is just one of MANY textual and guidance errors in the program.

[Critter · Accepted solution]

TT simplifies the IRS rules ... read the entire section here :

The definition of property eligible for 100 percent bonus depreciation was expanded to include used qualified property acquired and placed in service after Sept. 27, 2017, if all the following factors apply:

• The taxpayer or its predecessor didn’t use the property at any time before acquiring it.
• The taxpayer didn’t acquire the property from a related party.
• The taxpayer didn’t acquire the property from a component member of a controlled group of corporations.
• The taxpayer’s basis of the used property is not figured in whole or in part by reference to the adjusted basis of the property in the hands of the seller or transferor.
• The taxpayer’s basis of the used property is not figured under the provision for deciding basis of property acquired from a decedent.
• Also, the cost of the used property eligible for bonus depreciation doesn’t include the basis of property determined by reference to the basis of other property held at any time by the taxpayer (for example, in a like-kind exchange or involuntary conversion).

[Critter]

<a rel="nofollow" target="_blank" href="https://www.irs.gov/newsroom/new-rules-and-limitations-for-depreciation-and-expensing-under-the-tax-...>

[stzobery]

Thank you for your answer!