topic Asset Deductions in Deductions & credits

Asset Deductions

guitarbanae — Sat, 29 Mar 2025 22:06:04 GMT

I'm a tad confused about asset deductions being spread over several years.

For instance I purchased a laptop for $2386 in 2021. I elected to spread it over several years but don't remember exactly the option I selected. When I click on the option that shows me more details about it

I see:

Your 2024 estimated expense for this asset is $163.

Years to fully depreciate: 5

MACRS Convention: MQ

Depreciation Method: 200DB

Special Deductions

Section 179: $1193

Special Depreciation Allowance: 0

My questions are:

What is the dollar amount that I am able to apply to my 2024 taxes?

Do I have to enter this amount somewhere manually or does TurboTax automatically apply this amount somewhere?

I'm new to using TurboTax so I'm learning as I go.

Thanks in advance!

Re: Asset Deductions

DianeW777 — Sat, 29 Mar 2025 22:19:29 GMT

You will have a dollar amount for your computer in 2024 and it will finish fully depreciating in 2026. The convention of MQ means mid-quarter and it was used because your computer was purchased in the last quarter of the year and placed in service for business use. You chose to expense $1.193 as a Section 179 deduction in the first year so the remainder is depreciated using the information and the chart below.

TurboTax will calculate the appropriate depreciation based on the information in your tax return or what you enter into your tax return and should be the figures you show. ($2,386 - $1,193 = $1,193 balance to be depreciated).

2021 Year 1: half of the last quarter
2022 Year 2: full year
2023 Year 3: full year
2024 Year 4: full year = $163 depreciation expense for the computer.
2025 Year 5: full year
2026 Year 6: first three quarters (completes the full five years recovery period)
- IRS Publication 946 - The Mid-Quarter chart is at the end with many charts

Re: Asset Deductions

AmeliesUncle — Sat, 29 Mar 2025 22:20:09 GMT

Based on what you said, it will automatically apply the $163 to your tax return.