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New Member
posted Mar 17, 2025 6:05:23 PM

Schedule C line 13

Last year, H&R block calculate my 7 year depreciation at 635. This year, I entered 635 on the 176 question but then turbo tax doubled this amount when expenses were calculated and I don't understand why. It should be 635 a year for the 7 year period right?

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1 Replies
Expert Alumni
Mar 17, 2025 7:40:10 PM

If the asset was placed in service in 2023, the depreciation increasing significantly makes sense.

 

In the year that assets are placed in service, you can only take a half year's worth of depreciation - it doesn't matter when your asset was actually placed in service that year. This means the depreciation in year 1 will always be low compared to the next year when you can take a full year of depreciation.

 

After the second year, your annual depreciation will‌ decrease each year. Tax depreciation is "front loaded" - you get bigger deductions on the front end and smaller deductions the older the asset is.