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Level 1
posted Jan 26, 2024 10:47:24 PM

Do I need to purchase TurboTax Desktop to allow me do the cost segregation analysis form?

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1 Replies
Expert Alumni
Jan 28, 2024 2:17:54 PM

No, you can use TurboTax Online, but the cost segregation analysis isn't a tax form that you can fill out in any program. 

 

It's a method of accelerating depreciation deductions by breaking down depreciable property into its smallest components and depreciating them individually. 

 

For example, if you buy a house to rent out, normally you would list the entire property as a single asset depreciable over 27.5 years. 

 

In the cost segregation method, you would list the different components as separate assets and assign a portion of the total cost to each component. See the spread sheet below for an example.

 

If you want to do this, you need to create a spreadsheet similar to the one below and make sure your totals add up to the amount you paid for the entire property. Then you enter each asset separately in TurboTax.