Prior depreciation for a farm asset
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New Member

Prior depreciation for a farm asset

During "final review" I received the message to enter a value for "prior depreciation". This was for a pickup which became an asset in late 2015. I believe I entered the wrong value from a 2015  4562 form. I see that deleting my Schedule F will also delete all my last year's asset records. What should I do? I don't want to delete Sched F. . . . Also, is this the same "prior depreciation" value which appears on my original asset record? If so, why wouldn't Turbo Tax use this value during "final review".
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New Member

Prior depreciation for a farm asset

Two things:
1) I put the Farm Truck in service late in 2015 and don't recall getting the option for "standard mileage deduction"; I think that I recorded actual miles used (very low) for the farm; and, even though I specified use of the truck as 80%, the following shows on my 4562 (2015) form:
    27 Property used 50% or less in a qualified business use :  1.43%

2) I don't know how to access my "Car and Truck Expenses Worksheet" from TT. Should I be able to find this worksheet for my 2015 return?
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New Member

Prior depreciation for a farm asset

Sounds like you claimed the "standard mileage deduction" of just 1.43% business use in 2015. Probably with the very low miles reported. You can switch to "actual expenses" in 2016 and claim 80% if that's more accurate/advantageous. I won't use the online versions of TurboTax, no forms view. I only recommend the CD version. I believe after you pay for your online tax return you can view/print your tax forms and worksheets. To find this go to My Account in the top header bar. Your 2015 forms and worksheets should all be printed and held for safe keeping.
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New Member

Prior depreciation for a farm asset

If you are operating a farm business do not just delete your schedule F. That would eliminate your farm completely. There is a proper way to close down a business and that is not the way. Your assets must be "Edited" to report how your assets where disposed of in order to close your farm business.

When entering an asset for the first time and the asset was purchased in a previous year TurboTax will ask for "Prior Depreciation" in case it was ever used in business previously. They are asking for the total of prior depreciation taken on that pickup in previous years. If you "placed it into service" of your farm business for the first time in 2015, you would have entered zero Prior Depreciation. 2015 would be the pickups first allowed depreciation. For 2016, the pickup is already an asset on your Depreciation Report so you do not enter it again. Now we just need to find out why TT is asking for a review of "Prior Depreciation".

When you entered your pickup as an asset in 2015, did you use actual expenses or take standard mileage deduction?

Have you reviewed your Car and Truck Expenses Worksheet?

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