Special Depreciation Allowance

[dmichael58]

The Special Depreciation Allowance that I took in 2018 is not showing up on my form 4562 of my 2019 return.  Turbotax is calculating the Special Depreciation Allowance as if this is a new asset and therefore not deducting the depreciation that was deducted in 2018.  Whether I select new or used for the asset nothing changes.

How do I get my 2018 Special Depreciation Allowance imported to my 2019 return.

[Anonymous_]

---

@dmichael58 wrote:

The Special Depreciation Allowance that I took in 2018 is not showing up on my form 4562 of my 2019 return. 

---

I am not sure what is happening with your tax file, but the special depreciation allowance is not supposed to show up on Form 4562 the following year.

However, you should see the asset, whether it is a rental or business asset, and the special depreciation deduction that was taken the previous tax year (see screenshots). 

Further, the allowance should appear on the Depreciation and Amortization Report.

[penroset]

I had rented out my residence in 2018 and 2019 and Turbo tax allowed for depreciation in 2018 but not in 2019 so what gives?  How do I get depreciation on my tax return.  Also, I am a realtor and spend more than 750 hours per year on rentals. 

[ThomasM125]

If you set up the house for depreciation, then it should be deducted over 27.5 years. Make sure you entered the house as "Rental Real Estate Property."

[penroset]

Thank You, here is the issue.  I am using Turbo Tax Delux and it doesn't give me the option to call the home a Rental Real Estate.  The first page of the "Rental Property" Section asks how much time I devote to my real estate business and I check more than 750 hours.  The next page then says I am not a real estate professional.  No discussion on type of property.  On my 2018 return it worked just fine, but on 2019 nothing.  Do I need to upgrade to the next level Turbo Tax to get it recognize? 

[Anonymous_ · Accepted solution]

---

@penroset wrote:

Do I need to upgrade to the next level Turbo Tax to get it recognize? 

---

You should probably upgrade to at least Premier if you are using the online version of Deluxe.

Also, you need to check both boxes to qualify for real estate professional status (see screenshot).

[djbrg1]

As a new TurboTax user, I am looking for help!! TurboTax isn't recognizing my Special Depreciation Allowance (SDA) that I took on assets purchased and placed in service in 2018. It does not bring up a screen or place for me to enter the 2018 SDA that I took.  TurboTax does recognize SDA and allow me to enter it for assets purchased prior to 2018, but not for anything purchased in 2018. HELP!!!

[ALICIA9221]

Hi, I'm having the same issue you had with your 2019 tax return, can you please tell me how you fix it?

Thank you,

AS

[JamesG1]

Are you saying that you took the Special Depreciation Allowance as a 100% deduction on an asset in 2019?

If that is what you are saying, the Special Depreciation Allowance is not supposed to show up on Form 4562 the following year.

However, you should see the asset, whether it is a rental or business asset, and the Special Depreciation deduction that was taken the previous tax year.  The allowance should also appear on the Depreciation and Amortization Report.

[dmichael58]

The only way I could fix the problem was to start a new return.  Everything was fine after I started a new return. 

[ALICIA9221]

Thank you so much for your help!

[Tphuong]

I sold the vehicle in 2020. I took the special depreciation but in 2020, this special depreciation allowance field gave me an error. How can I fix it.

[ColeenD3]

What error? If you took accelerated depreciation of any kind at 100%, the basis of the asset is now zero. The sales price is the taxable gain.