Possible to change MACRS convention from 27.5 to 5 year HY convention?

Forum|Forum|1 year ago
March 27, 2025
2 replies
0 views

for Depreciation on form 4562, my accountant last year has my rental listed as 5 yr property, HY convention, 200DB method, but turbotax won't let me modify this years MACRS convention for the same property. I tried starting asset details from beginning, but no way to modify the depreciation method that I can see.

JamesG1

I presume that you did not use a TurboTax product for your 2023 income tax return but you are using TurboTax for 2024.

If this is correct, you want to review how the assets were entered into the rental activity on Schedule E Supplemental Income and Loss.

In TurboTax Premium Online, how the asset is identified at the screen Describe This Asset and the screen Tell Us a Little More About Your Rental Asset likely determined whether the asset was reported as 27.5 year or 5 year.

Since you entered the asset in the current year's income tax return, you are able to go back and review the original entries. You should be able to mirror the selection that your accountant made in 2023.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

armstrongbrown-alicenAuthor

I have tried several times to find where I can change how the asset is entered in terms of the method, convention, number of years. I don't see in any place that Turbotax gives me a choice. Can you be more specific? I tried editing the details of the current asset, I tried creating a new asset to see if there was an option to specify these details. didn't see it.

KrisD15

You have the option of choosing that depreciation method for the asset.

When you enter the assets, select

"Other asset type" on the "Tell Us a Little More" screen

Enter the information needed on the "Tell Us About This Asset / Large Purchase" screen

Enter the information needed on the "Tell Us More About This Asset / Large Purchase" screen

Select "5 year" asset class

Select "I used the half-year convention"

Select "200% Declining Balance" for Depreciation Method

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

AmeliesUncle

@armstrongbrown-alicen wrote:
for Depreciation on form 4562, my accountant last year has my rental listed as 5 yr property,

Is this for the rental of the actual real estate/building? If so, 5 years is wrong and you should NOT keep using that.

Is this Residential Rental Property? Was 2023 the first year it was "placed in service"?

armstrongbrown-alicenAuthor

Yes, it's a stand-alone cottage on my property. I don't know why the accountant set it up this way. In 2022 it was listed as a 27.5 year recovery, and on 2023 return it changed to the 5-year, but above, Section A on line 17, for "MACRS deductions for assets placed in service in tax years beginning before 2023" it has a sum there, then below it has the info for the 5 year property. Not sure how to go forward now with the depreciation....

AnnetteB6

Try to find a Depreciation Report or something similar that was included with your 2023 tax return. Since there is an amount being reported on line 17 of your depreciation Form 4562, that probably represents the cottage itself since it was placed in service in 2022.

Then, an amount reported on line 19b would represent a new 5-year asset being placed in service during 2023. Do you recall adding a new appliance or piece of furniture in 2023 that would be depreciated? Line 19c would represent the cost of the item placed in service. The amount may jog your memory.

@armstrongbrown-alicen

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"