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I just retired from farming. I have a tractor not fully depreciated. Can I add that asset to a 2nd business that I own & complete the depreciation started on Sched F?

Forum|Forum|3 years ago
December 10, 2022
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TurboTax Online

Best answer by Anonymous_

That scenario should result in the same basis for depreciation purposes so it should be allowable.

A

Anonymous_Answer

Employee

That scenario should result in the same basis for depreciation purposes so it should be allowable.

J

justlookingonAuthor

OK, so how exactly do I do this? I have a handle on disposing of an asset, but this asset is being transferred. Do I used the original sales price as the basis on the 2nd business and then record the depreciation already taken? This is a 5 year asset with 3 years left, how do get this entered in correctly? I entered the original sales price as the basis, but when I entered "prior depreciation", it lit up as an error. Thanks

D

DianeW777

Yes, you do add the asset at the original date placed in service and original cost. Because the asset is being used by a related party it retains it's character for your second business. Be sure you are using the correct date placed in service (original date) this way TurboTax will calculate the correct prior and current depreciation.

Please update if you have more questions.

@justlookingon

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J

justlookingonAuthor

Well, when I close out the asset on Schedule F, it then shows a loss of $12797 ($33,800 basis minus depreciation from '20, '21, and 1/1/22 to 5/1/22.) when I use "0" as the sale price. Would it be alright to show the asset as sold for $12797 on 5/1/22 on Schedule F, and then bring it over to the other business on 5/2/22, use $12797 as the basis, and finalize depreciation over another 5 years just like it had been sold to another business?