Asset Entry Smart Check Error

[kinch956]

Hello,

Smart Check is giving me 2 errors on my Asset Entry worksheet for a misc deduction. Lines 9k and 9l are blank. How should I fill these in? Note that lines 10 and 11 are 0.

Thanks!

[JulieS]

We'd love to help you complete your tax return, but need more information. Can you please clarify your question?

What type of Asset did you enter?

What sort of activity is this related to?

[kinch956]

It's a Misc Deduction. I bought it last year for $330 and have a 5% percentage of business on it. This is the second year for it. It's a computer type asset.

Line 45: MACR5

46: 5

47:200DB

48: HY

Hope this helps.

[MarilynG1]

If you bought an asset for business and claimed it as a Miscellaneous Deduction for $330 last year, you can't claim it again this year.

Maybe you claimed a 179 Expense Deduction or a Special Depreciation Allowance last year for $330, since you only have a 5% Business Use. 

Check your Form 4562, Depreciation Report from last year (landscape form).

Since we can't see your return in this forum, that's the only to know how you claimed it last year.

The entries you have for lines 45-48 are standard for depreciation, but if you have no amount in Line 11, you have no depreciation for this year.

Here's more info on Depreciation of Business Assets. 

[kinch956]

Good morning!

Thanks for looking into my question! My 2022 return doesn't contain a Form 4562, and this asset was pulled into my 2023 return since it has a 5-year depreciation. 

So I assume that this means that I didn't claim it last year really? Especially with line 11 of the worksheet being 0? 

[AnnetteB6]

Line 11 would show the 2023 amount of depreciation being claimed.  

Double check the entries on the Asset Entry Worksheet for lines 4 and 6.  According to the information you shared, those should be $330 for the total cost of the asset and 5% for the business use.  That would mean that you are depreciating a total of $16.50 over 5 years.  Check your 2022 tax return to see if you claimed an expense for that amount.  You may have already claimed the asset without actually depreciating it.  If that is the case, then you do not need to be depreciating the asset at all.

@kinch956 

[kinch956]

I confirmed that lines 4 and 6 for both 2022 and 2023 say 330 and 5% respectively. Thinking about this over the weekend, I maxed out my standard return last year and this year. I don't see how this could have prevented the program from correctly and completely filling out the worksheet, but maybe that's it? This year, as last year, it said to keep on filling out deductions and things in case I could use it on the state part of my return.