I am using TurboTax home & business v23. I bought a house in Jan 2022 for 550K (structure $500K, land 50K) and put it on rent in 2022. I am a professional investor and can deduct 100% of the losses incurred due to the property.
I took MACRS depreciation deduction of $18,181 on it on a 27.5 year schedule ($500k/27.5=$18,181) in 2022.
so ($500k-$18181=) $481819 of depreciation remains to be taken over next 26.5 years. But instead of continuing on this path I would like to switch to one time cost segregation bonus depreciation deduction on assets that are on a 5 year and 15 year depreciation schedule.
I had a cost segregation study done and was told items worth $126K are on a 5 year/15 year depreciation schedule.
I am filling my 2023 tax returns and would like to take advantage of the fact that bonus depreciation deductible % for year 2022 is 100%.
I understand i will need to file form 3115 to let IRS know about the change in accounting method.
My question is, how do I switch from MACRS depreciation I used in '22 to bonus depreciation deduction for the $126K worth of assets in the house in my '23 tax returns in turbotax? Currently I do not see a way to do this in Turbotax also couldn't find a clear answer in the current QA. Thank you for your help.
