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Level 3

Form 4562 - Asset no longer depreciable

My 2018 TT did not import my second rental property's Form 4562 so I had to recreate each asset for my 2019 return.  My question is I have several assets that are completely depreciated but are still "in service".  Should those assets remain on Form 4562 until I sell the property? 

6 Replies
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Employee Tax Expert

Form 4562 - Asset no longer depreciable

Yes, those assets should remain on Form 4562 until I you sell the property, both for your records, and to report the disposition of the assets.

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Level 3

Form 4562 - Asset no longer depreciable

Appreciate the quick response and sorry for the delay in saying thanks! 

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New Member

Form 4562 - Asset no longer depreciable

The Form 4562 information for my second rental property was not imported into TurboTax 2019 from TurboTax 2018.  Why not?  If this is an unresolved bug, how can I accurately reenter the information into my 2019 return?

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Level 3

Form 4562 - Asset no longer depreciable

I had the same exact problem!  I spent over 3 +  hours on the phone with TT and they were unable to resolve the issue.  When I opened my 2018 TT backup - all information for both rental properties were there - so it was not a "corrupted file" and it transferred all of one property but none of the 2nd property.  I ended up manually recreating (UGH) my depreciation schedule and recreating everything down to initial purchase info for the 2nd rental.   I tried every conceivable way to transfer (as I had both a cd rom and usb stick of the data) but to no avail. 

 

To recreate, I just began as if it were a new rental property and then recreated all from the 2018 return.  Be extra careful when you are entering your prior years of depreciation and the date you first acquired the property. 

 

Hopefully, TT will conduct further research but after talking with 3 different tech help folks - they seemed to just want to blame my "corrupt" file.

 

Sorry I couldn't offer anything more helpful than the misery of redoing it all. 

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Level 1

Form 4562 - Asset no longer depreciable

a fully depreciated asset still in service, example a fridge, which remains in form 4562 because it is still in service. When you sell the real estate which includes the fridge (now a piece of junk), do we have to include the depreciation as recapture? Do we have to wait to remove the fridge from form 4562 only after we replace or throw it in the garbage?

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Expert Alumni

Form 4562 - Asset no longer depreciable

When you sell the property, more than likely the purchase price will not include anything for the assets that are fully depreciated. So, there will not be any gain on the sale of those assets, so you will not have any depreciation recapture on them.

 

Unless you plan on selling the assets, if they are fully depreciated you can remove them from TurboTax if you want.

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