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.
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.
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?
I have the same question as the first commenter to the original post.
I have the same question as the first commenter to the original post.
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.
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?
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.
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.
What is the "Special Depreciation Allowance"?
Thank you!
Richard O'Leary
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?
What is the advantage or disadvantages of opting out of the special depreciation allowance.
It is a tax planning alternative. If you take special depreciation in the year of purchase, you do not have any depreciation to take in future tax years. If you already have a business loss or lower income in the current year, it may be wise to defer the depreciation into later years, especially if you expect income to increase without additional capital assets to reduce the taxable income.
Where do I put my depreciation for my vehicle? What Category?
Can I used miles and Depreciation for my work vehicle"?
Thank you
If you were asking about using your employee vehicle expenses as a deduction, that is not possible at this time.
Under the Tax Cuts and Jobs Act (TCJA) that Congress signed into law on December 22, 2017, the unreimbursed employee expenses deduction has been suspended in tax years 2018 through 2025. There are some exceptions where you can still use Form 2106 through tax year 2025, including if you were an Armed Forces reservist, qualified performing artist, fee-basis state or local government official, or an employee with impairment-related work expenses.
State taxes: Job-related expenses might be deductible in your state even if they’re not deductible on your federal return. You can enter your expenses as below and we’ll figure out if you can deduct them.
If you’re self-employed or own a business, enter your business-related expenses on Schedule C instead.
Instructions
Here's how to enter your job-related expenses in TurboTax 2018 or 2019 if you meet the requirements mentioned above):
I have no employees. I bought this vehicle for Business used only in 2015. I have depreciated it every year, but Turbo Tax is telling me I have No depreciation for this year,,,, This is the last year and it should be $5697 and it keeps telling me 0.....
can't I talk to someone who can run through this with me????
it is on a 5 year schedule...2019 is the last year we can take it.
I thought that when I bought Turbo tax I got a Tax Expert to help? how do I fi d that person?
If you purchased one of the TurboTax Live products, you can definitely reach out to an expert for help. Please see the below TurboTax FAQ to assist with connecting to an expert:
How do I connect with a tax expert in TurboTax Live?
Where can I find the special depreciation in my income taxes forms?
To depreciate your assets in TurboTax,
Click the "Federal Taxes," then "Deductions."
Click "Start" or "Edit" on the "Your Deductions Screen" and follow the instructions to enter the details of the asset. You will include its starting value and recovery period.
Here is a TurboTax article about special depreciation and an IRS link about how to depreciate property.
Related Information: