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Level 2
posted Feb 22, 2023 8:27:42 AM

Depreciation question when item paid for over 2 years

How do I record a deposit made in 2022 for a depreciable asset placed in service in 2023? It's rental property.

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1 Best answer
Expert Alumni
Feb 22, 2023 8:47:49 AM

An asset can only be depreciated from the date it is placed in service.

 

So for tax year 2022, your deposit is not recorded on your tax return. Just keep a note of it to add it to the cost of the asset in 2023.

1 Replies
Expert Alumni
Feb 22, 2023 8:47:49 AM

An asset can only be depreciated from the date it is placed in service.

 

So for tax year 2022, your deposit is not recorded on your tax return. Just keep a note of it to add it to the cost of the asset in 2023.