Marcrs depreciation not calculated correctly, what did i not mark on entry sheet?

Forum|Forum|3 years ago
March 30, 2023
3 replies
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this is my first year, it is a short year. not section 179 everything as i want to show a profit.

TurboTax Online

DaveF1006

To clarify, what type of property is it? Also what date did you place it in service? Without looking at your return, the calculation may differ depending if it a mid-month, half-year, or mid quarter convention. Approximately, how much was the property?

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marciashanafelt@Author

It's equipment, hy, I have a print out from my accountant so I know what it should be. Have a list of 30 items, none are coming out correct. Can I just override the amounts on the return, or does the depreciation schedule get sent in with my e-file?

AmeliesUncle

@marciashanafelt@ wrote:
It's equipment, hy, I have a print out from my accountant so I know what it should be. Have a list of 30 items, none are coming out correct.

Can you give an example of one of the items?

The cost,
Date it was placed in service,
Business percentage,
Method (such as 200%DB)
Number of years,
Prior depreciation,
In the US?
Etc.?
What does TurboTax shows for depreciation?
What you think it should be?

Carl11_2

Employee

Most common reasons this happens.

1. Incorrectly stating less than 100% business use and/or more than 0% personal use of the asset. When the asset is placed in service, if there is no personal use after that date it's placed in service, then it's 100% business use and 0% personal use. Typically, you indicate the asset was used in the business "the whole year". The program "knows" to compute things from the in-service date. What the asset was used for before it was converted to business use, does not get counted for anything.

2. When dealing with real estate, if only a portion of the real estate is business use, there is a difference between "percentage of space" exclusive to the business, and "percentage of time" that space was used in the business. While percentage of space may be less than 100%, the percentage of time that space was used in the business would most likely be 100%.

Depending on what you're dealing with here (rental property? Home office? etc.) its' perfectly possible the program may not be asking the right question.

AmeliesUncle

@marciashanafelt@ wrote:
this is my first year, ... as i want to show a profit

Is it taking more depreciation that you intended? The 'default' is to use 100% Bonus Depreciation, which would deduct the entire cost this year.

If you don't want that, you need to specifically state you don't want that. As for how to do that in TurboTax, perhaps you could go back through the questions, or perhaps somebody else could guide you how to do that.

If that isn't the problem please let us know the details about why you think it is incorrect.

marciashanafelt@Author

I do not want bonus depreciation. I am section 179 just enough to leave a few hundred profit for the year. I have gone thru the questions several times, marking different things. It's not giving me enough depreciation. Just thought someone might be able to help me with what should be marked on all the questions.