What is special depreciation allowance

[wilsonfamily4jes]

I didn't choose this and I am not sure what it means?

[jbeckerxyz]

special depreciation allowance

[sancoymea2430]

where will i find it

[polsgrove9]

Can I deduct loan origination fees

[TaxGuyBill · Accepted solution]

Many items over $200 are depreciated over a number of years as "Assets".  The Special Depreciation Allowance gives you 50% of that deduction in the first year, then the other 50% is depreciated as usual.  [EDIT:  Starting September 28th, 2017, the Special Depreciation Allowance has changed to 100%.]

It is an automatic thing.  You need to specifically elect OUT of it if you do not want it.

[bournsa125]

I'm trying to figure out if I should elect out.  My gross income is over $150K, and I don't seem to benefit from any rental losses.  Should I still take the special depreciation allowance, or should I opt out, seeing as how it did not benefit me in any way?  I actually plan on selling the house in 2016.  If I opt out of the Special Depreciation Allowance, does that help me or hurt me when I sell the house?

[bcpA]

I have the same question as the first commenter to the original post.

[bcpA]

I have the same question as the first commenter to the original post.

[ttdang]

I don't see the option to elect OUT in the step by step in TT business 2018. Updated to the latest still don't see this.

[Christa]

 When  providing information for a rental property purchased in 2017, TurboTax would not accept ‘no’ for an answer when offering the special assessment of 50% depreciation for 2017 and 50% for 2018.   I  was assured by a representative that despite having to choose that option, the property would still depreciate for 27 1/2 years.     That didn’t make sense, but sounded good.   Now this year (I filed for an extension for 2018 taxes and am working on them now), I don’t see that ‘second year promise’.   I’m unable to speak to a representative about this – only automated responses are available to me on the phone.   Has anyone experienced the same situation?

[xmasbaby0]

Phone support is not provided with the Free Edition.  If you are using a paid version of the software or if you purchased PLUS you can get phone support when customer support is there.  Otherwise, post your question here and someone will try to help.

To call TurboTax customer support

https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number

They are available from 5 a.m. to 5 p.m. Pacific time Monday - Friday.

[Christa]

Last year when filing 2017 tax, the system did not allow me opt out either.  I’m disappointed by the lack of choice.  I wish I could help.  Instead I can only commiserate.  

[Rabbits01]

What is the "Special Depreciation Allowance"? 

Thank you!

Richard O'Leary

[BillM223]

@Rabbits01

As TaxGuyBill wrote above:

"Many items over $200 are depreciated over a number of years as "Assets".  The Special Depreciation Allowance gives you 50% of that deduction in the first year, then the other 50% is depreciated as usual.  Starting September 28th, 2017, the Special Depreciation Allowance was changed to 100%.

It is an automatic thing.  You need to specifically elect OUT of it if you do not want it."

Do you have an additional question about this?

[Tim928]

What is the advantage or disadvantages of opting out of the special depreciation allowance.