Straight line depreciation used for rental property appliance

Forum|Forum|7 years ago
June 3, 2019
1 reply
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My accountant used 5 year straight line (SL) depreciation for $2700 appliances i purchased for rental property on June 2015 ( 2016 depreciated was $315). TT is using 5-yr MACRS method when i input with previous depreciation amounts of $855 and 2017 depreciation is $738.

Is $738 the correct depreciation amount for this case or i should stick to SL depreciation of $540/year?

I have seem comments which indicates once SL is used, I cannot switch to MACRS.

TurboTax Home & Biz Windows

Anonymous

That is correct. You need to continue with Straight Line.

To enter an asset using straight-line depreciation, use these steps:

Navigate to the area of your tax return where you want to enter a depreciable asset
Click Add an Asset
On the screen titled Describe This Asset, choose Intangibles, Other property then click Continue
On the screen titled Tell Us a Little More, choose Other asset type then click Continue
On the next screen, enter the details for the description, cost, and date purchased or acquired then click Continue
On the next screen, continue adding details regarding the asset and click Continue
Next, choose the appropriate asset class (class life) and click Continue
Depending on the date the asset was placed in service, there may be an additional screen asking for more information
Next, choose the Straight Line depreciation method, then click Continue
There will be additional questions to review your entries and add more details if needed (such as depreciation taken in prior years)
Continue going through all screens until you get back to your summary screen showing your complete list of assets