Turbotax is now giving an error for form 4562 depreciation options - this asset is not qualified property for SDA

[user17698861307]

In the most recent TurboTax Business software update (1/22/26 or 1/29/26), I have a NEW error that now pops up during Federal review.  This error was not present in tax year 2024 or earlier, and was not present in tax year 2025 until the most recent software update on 1/21 or 1/29.  Why is this showing up now, and not before the software update ore previous tax years?  Is this a TurboTax bug?

[pcfor2]

I had the same issue but there is an additional one (see #2 below)  There may be a solution to your problem though (see #1 below):

#1 -  If the asset was placed in service in a previous year, it is no longer eligible for bonus depreciation in the current year.  The solution to the bug which apparently cropped up with the update when importing asset data from previous years is:  override the red "X" and de-select it.  This clears the error.  You might have to do the same thing on another box too depending on how Turbo Tax deals with this.

#2 - If the asset was placed in service in the current year, even though you elect for a bonus depreciation and it is eligible for it, Turbo Tax flags this in the same way as #1.  I have not yet found a way to elect bonus depreciation and actually receive it for an eligible asset class without triggering the red "X".  This is almost certainly a bug.  TURBO TAX NEEDS TO FIX THIS ASAP!!!!

[user17698861307]

Note, there is a similar thread on this topic.  Looks like there may be a fix coming next software update in TurboTax.

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/form-4562-special-dep...

[MindyB · Accepted solution]

Forms 4562 attached to Schedule E are currently being updated. 

The software should be updated after 02/11/26, but our tech team is working hard to have those updates before that date.