I had a computer monitor put in service for 50% business use in 2020. During smart check TT is asking me to enter a value on Rows 9K Special Depreciation allowance deduction and 9L AMT Special Depreciation allowance deduction.
Prior Depreciation was 0. And this issue did not happen last year. What am I supposed to fill here.
Furthermore, if I try to go to Step by Step to see if there is something in the interview that I could answer TT doesn't take me to the relevant section. What can I do?
If you had zero depreciation in 2020, you would enter zero for both the Special Depreciation allowance and AMT Special Depreciation. But before you make those entries, look through your copy of last year's return to see if you have a Depreciation and Amortization Report and an Alternative Minimum Tax Depreciation Report. There is a column for Special Depreciation Allowance on both these reports, which will confirm the number you need to enter for SmartCheck.
This information is typically imported from last year when you start your current year return. But sometimes the system doesn't handle this properly. Unfortunately, the asset interview doesn't always ask for prior Special Depreciation, so you should enter these numbers from the SmartCheck screen. This process is meant to catch missing info so your return e-files correctly.
If you had zero depreciation in 2020, you would enter zero for both the Special Depreciation allowance and AMT Special Depreciation. But before you make those entries, look through your copy of last year's return to see if you have a Depreciation and Amortization Report and an Alternative Minimum Tax Depreciation Report. There is a column for Special Depreciation Allowance on both these reports, which will confirm the number you need to enter for SmartCheck.
This information is typically imported from last year when you start your current year return. But sometimes the system doesn't handle this properly. Unfortunately, the asset interview doesn't always ask for prior Special Depreciation, so you should enter these numbers from the SmartCheck screen. This process is meant to catch missing info so your return e-files correctly.
Patricia,
I checked last year's return. There is no depreciation report in the saved PDF file with option all work sheets. If I go into TT 2020 program, then in the Asset entry page for this asset, all depreciation values including AMT depreciation values are 0.
Do you think then it is safe to mark these fields as 0 in 2021 also?
Thanks!
The special depreciation allowances apply to the year you put your asset into service, so you may need to look in the year the asset was put into service to see what the special depreciation allowance was.
Thomas,
As I mentioned above this was put in service in 2020 and that year's Turbo tax has all these fields as blank or 0.
You can look on your form 4562 (Depreciation and Amortization Schedule) in 2020 and you will see the section 179 depreciation on line 9 and the special depreciation allowance on line 14. If those entries are blank, the you had no such depreciation on the assets in question, including the AMT depreciation.
TurboTax actually did not print form 4562 and it is not in my 2020 return. The asset entry work sheet is. If I try to print specific form it gives an error. If I try to preview it as a PDF it gives an error. On the asset entry on these lines 9k, 9L are blank and lines 10-13, 14 are all 0.
@vident You should go ahead and enter zero on those lines (although I assume that you already have).