topic HOW TO ENTER SALVAGE/BASIS REDUCTION in Business & farm

HOW TO ENTER SALVAGE/BASIS REDUCTION

mgmorris — Wed, 26 Jun 2019 02:15:03 GMT

I have an asset that we paid $20,000 for. My accountant had entered a Salvage/Basis Reduction of $5,000 so that the asset would be depreciated as $15,000 S/L over 15 years. Where can I enter this information in TurboTax for the asset?

Re: HOW TO ENTER SALVAGE/BASIS REDUCTION

Anonymous_ — Wed, 26 Jun 2019 03:36:25 GMT

@mgmorris wrote:
Where can I enter this information in TurboTax for the asset?

In the Business tab (you need to set up your business in the program first). You can type in "assets purchased, self-employed business" in the search box, click the Find button, and then click the "Jump to" link (see first screenshot).

If you are in the Business section, click the Start button to the right of Assets Being Depreciated (see second screenshot).

Your depreciable basis is $15,000. You will not enter the salvage value in TurboTax.

Re: HOW TO ENTER SALVAGE/BASIS REDUCTION

mgmorris — Wed, 26 Jun 2019 03:46:18 GMT

I was actually using the Business Premier for my LLC, does that change anything? (Other than where to enter assets in the program of course)

I should just enter $15,000 as my purchase price for the asset instead of the actual $20,000 that I paid?

Re: HOW TO ENTER SALVAGE/BASIS REDUCTION

Anonymous_ — Wed, 26 Jun 2019 03:57:53 GMT

@mgmorris wrote:
I was actually using the Business Premier for my LLC, does that change anything? (Other than where to enter assets in the program of course)

I should just enter $15,000 as my purchase price for the asset instead of the actual $20,000 that I paid?

Yes, enter $15,000 for the asset (that is your basis for depreciation).

The actual version does not make a difference except you need TurboTax Home & Business or Self-Employed to enter a business asset that you are depreciating. There is no such program as Business Premier, just TurboTax Premier (and TurboTax Business, which is for multi-member LLCs).

Re: HOW TO ENTER SALVAGE/BASIS REDUCTION

mgmorris — Wed, 26 Jun 2019 19:29:35 GMT

Got it, thank you!