Is the "Let's Check Your Five-Year Property Depreciation" a bug? How do I resolve it?

vsanghvi · Mar 15, 2022 10:38:53 PM

I get a screen titled "Let's Check Your Five-Year Property Depreciation". The text is that "We noticed that you want to take special Economic Stimulus depreciation on some of your five-year depreciable assets and regular depreciation on the rest.". Digging in, I have depreciation for a rental property and job related expenses. Looking at the printed out return, the only reference I can see is in the "Car and Truck Expenses Worksheet 2021" for my rental (which doesn't have any special election checkboxes checked) and there's an attached "Special Depreciation Allowance Elections under IRC Section 168(k)(7)" that says I elected to take a depreciation on a "5 Year Property" (I've tried to delete this form but it never works). Of the two places it asks it me to edit, no references are made to any special election. Is this a bug with turbotax or am I missing something?

@STYLISHLIVING wrote:
If i took the 100% special Economic Simulus depreciation for all assets I put inplace last year (2021), can I change to 5-year method depreciation for assets I put inplace this year (2022)?

I am not sure why I also received the warning when all my 5-year assets are depreciated using the 5-year depreciation schedule for 2022.

Yes, you can switch from year to year.

I recommend going through each of the new 2022 assets and double check that you elected out of Bonus. And if you placed a vehicle in service, don't forget that too (it is also five year property).