Re: No. Don't just delete. Click the edit button and enter th...

Forum|Forum|3 years ago
April 9, 2023
1 reply
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I have a simple somewhat related question. Can I delete the assets that are fully depreciated? That's what I assume the "Delete" boxes in the property assets list are for, but only the "Edit" option is described. I assume that this would also delete all the long depreciated assets worksheets from the Forms. (I prefer going through the interview, rather than just deleting the forms.)

PattiF

Level 15

You will not be using the fully depreciated assets for your tax return again. You can delete them if you wish.

@czrunner

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Carl

Level 11

You will not be using the fully depreciated assets for your tax return again.

Not always true. When you sell or otherwise dispose of the asset, all that depreciation has to be accounted for. For example, with a fully depreciated rental asset, when you sell the asset you are required to recapture and pay taxes on all depreciation taken, in the year you sell it.

Whereas in a case where the asset was destroyed or thrown away as an example, you would report it as such and the year you report it, would be the last year you'd need that asset to show on the 4562.

czrunnerAuthor

Level 3

Thank you for your input, but now I am confused. The assets I am talking about are improvements inside a rental condo purchased in 2010. All assets listed in Form 4562 survived their listed life (generally 5 or 7 years, with the exception of the rental condo itself), and are still in use or have been replaced. The assets are mostly furnishing (new counter tops, carpet, window treatment, furniture), appliances, and TVs. I listed our condo expenses without paying much attention to the assets, because due to the high cost of utilities, taxes, insurance and management fees we have never made a profit on the condo rental. Only the first year I used the Special Depreciation Allowance. I don't even know what the 200DB/MQ or 200DB/HY in the Method/Convention column means or where exactly it came from.

We are both in our 70s, and don't plan on selling the condo any time soon. The assets inside the condo are not worth much, and couldn't be sold separately. Most likely, our children will inherit the condo, but I don't want them to inherit any headaches. In the future, would it be better if I list only major structural upgrades as improvements? For the time being, should I just keep all the assets in TurboTax (unless they are thrown out and replaced)?

Thank you.