Question

Unable to Enter Special Depreciation Allowance in TurboTax Online Self-Employed Edition

Forum|Forum|4 years ago
March 17, 2022
1 reply
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I'm entering assets that I purchased into service in 2019 and 2020 (e.g., a computer). My previous accountant used the special depreciation allowance to fully depreciate each asset in the year it was purchased. TurboTax prompts me to enter either the Section 179 deduction or "NOT Section 179 deduction or Special Depreciation Allowance". I'm never prompted to enter the Special Depreciation Allowance and so it incorrectly shows as $0. Furthermore, if I enter $0 for Section 179 and "NOT Section 179 deduction or Special Depreciation Allowance", then TurboTax calculations a depreciation amount, which is not correct behavior. The online version doesn't offer Form Mode. Please help.

T

ThomasM125

I think you mean that TurboTax is asking for section 179 depreciation as opposed to special depreciation and you are trying to enter the special depreciation amount.

If so, you can normally enter the cost of the asset as either section 179 or special depreciation, as it will give the same result. The only situations in which this may not work is if you weren't able to use all of the section 179 depreciation in previous years because you had a loss on your business. In that case you may have a section 179 carryover that could create problems.

So, I recommend you enter the cost of the asset when asked for Section 179 or Special Depreciation amount, assuming you used the cost for the expense allowance and don't have a carryover amount that was generated from a business loss in a previous year.

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