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Do I enter special depr allowance on a Macbook that is no longer used for business

I purchased a Macbook in 2020 with the intend to be used for business since I was laid off and returned my office laptop.

 

I have turned 65 and decided to retire.  What should I do that Smart Check review asking me to enter Special Depr Allowance for MacBook?  I have never taken any depreciation on this MacBook asset.

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KrisD15
Expert Alumni

Do I enter special depr allowance on a Macbook that is no longer used for business

Did you enter the laptop as a business asset on your 2020 tax year return and are you now trying to "Dispose" (take it off the books)? 

 

If that is the case, the program is asking if you TOOK Special Depreciation. If you never did, enter no or zero. 

If you never started a business, and never listed it as a business asset in the first place, you don't need to report anything about it now. 

If you DID start a Schedule C for 2020 and listed the laptop, you need to look to see what depreciation you took and any special depreciation or 179 Deduction, since that would need to be accounted for now. 

 

When you list a business asset, depreciation is calculated whether you want to claim it or not. 

Special (or Bonus) Depreciation and the 179 Deductions may have been available and if that was taken, it may need now to be recaptured. 

 

Please look at your 2020 tax year return for Form 4562 and the Depreciation Report Summary if you had any business assets listed, the depreciation (including Special Depreciation) would be listed there. 

If not, edit the section you are working in now to say you did not dispose of any business assets. 

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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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1 Reply
KrisD15
Expert Alumni

Do I enter special depr allowance on a Macbook that is no longer used for business

Did you enter the laptop as a business asset on your 2020 tax year return and are you now trying to "Dispose" (take it off the books)? 

 

If that is the case, the program is asking if you TOOK Special Depreciation. If you never did, enter no or zero. 

If you never started a business, and never listed it as a business asset in the first place, you don't need to report anything about it now. 

If you DID start a Schedule C for 2020 and listed the laptop, you need to look to see what depreciation you took and any special depreciation or 179 Deduction, since that would need to be accounted for now. 

 

When you list a business asset, depreciation is calculated whether you want to claim it or not. 

Special (or Bonus) Depreciation and the 179 Deductions may have been available and if that was taken, it may need now to be recaptured. 

 

Please look at your 2020 tax year return for Form 4562 and the Depreciation Report Summary if you had any business assets listed, the depreciation (including Special Depreciation) would be listed there. 

If not, edit the section you are working in now to say you did not dispose of any business assets. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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