topic Special Depreciation Allowance in Business & farm

Special Depreciation Allowance

scapularsales — Wed, 05 Jun 2019 18:36:21 GMT

I sold a piece of rental property. When calculating the depreciation recapture for the property will I add the "Special Depreciation Allowance" to the prior and Current depreciation?

Yes. Use all three of those (and any Section 179) to cal...

TaxGuyBill — Wed, 05 Jun 2019 18:36:23 GMT

Yes. Use all three of those (and any Section 179) to calculate the total depreciation.

Just to double check, when you say "rental property", so you mean a building that you rent out? If so, are you referring to appliances or something? For the most part, the building itself does not qualify for the Special Depreciation Allowance.

"When calculating the depreciation recapture for the prop...

SweetieJean — Wed, 05 Jun 2019 18:36:25 GMT

"When calculating the depreciation recapture for the property will I..." Doesn't the program do this automatically?

It didn't for me.

scapularsales — Wed, 05 Jun 2019 18:36:26 GMT

It didn't for me.

If you enter the sales price in the "asset" section, the...

TaxGuyBill — Wed, 05 Jun 2019 18:36:28 GMT

If you enter the sales price in the "asset" section, the program WILL calculate the appropriate taxes. If you enter it elsewhere (such as the Sale of Business Property section), you need to manually add up the depreciation.

Seems like the program has a flaw if the result depends o...

ghost — Wed, 05 Jun 2019 18:36:29 GMT

Seems like the program has a flaw if the result depends on where the sales price is entered.

@rebab The Sale of Business Property section is basicall...

TaxGuyBill — Wed, 05 Jun 2019 18:36:31 GMT

@rebab The Sale of Business Property section is basically a manual entry section (similar to the stock section), while the Asset section already has all of the pre-existing information, and you just add the sales information.

That's clearer, thanks.

ghost — Wed, 05 Jun 2019 18:36:32 GMT

That's clearer, thanks.