I have several small assets (carpet, appliances, etc.) for rental property that I would like to depreciate. Turbotax is automatically electing to expense these purchases, how do I avoid this default special depreciation expense?
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TurboTax will not expense small assets (under $2,500) automatically; you have to select that option.
Further, the assets/depreciation section of Home & Business is not yet complete. Are you using the 2023 edition?
I am using Home and Biz 2022 as I have not yet filed for 2022. I would like to depreciate my small assets, but the program is automatically expensing the entire asset under special depreciation. I have changed them to "other assets" and chosen straight line 5 year depreciation, but the program continues to expense the full amount.
Again, the program does not do that automatically; it asks you if you have assets that cost $2,500 or less.
You must have answered that question in the affirmative and, regardless, the program would not expense the assets automatically; you have to enter the figures manually in Expenses.
I have answered "No" to the question you referred to and entered the small assets manually under "other assets" with a 5 year, straight line depreciation schedule. It is still defaulting to special depreciation, the program only asked whether I wanted to take the special depreciation expense when I entered laptop under another rental property that is commercial. This property is a multi-family residential until. Please see screenshots here below. Question re assets under $2500, "NO"
Improvements as expenses question "NO"
I have no explanation for that behavior so you might want to contact Support. However, the program should not automatically select bonus depreciation either.
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