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April 13, 2023
Question

AMT How do I claim full depreciation on an asset I bought in 2022?

  • April 13, 2023
  • 1 reply
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Our diagnostic computer was stolen last year.  Cost in 2017 was $6395.  We bought a new one for $8395. How do I calculate the depreciation, for the stolen computer and take full depreciation for the new one?

1 reply

April 13, 2023

Your 2021 Federal 1040 tax return would include form 4562 Depreciation and Amortization Report which would report all information about the asset and its depreciation record.  See here.

 

 

 

Prior year tax returns may be found under Your tax returns @ documents down the left side of the screen.  See also here.

 

Report both assets under your self-employment activity.  Follow these steps:

 

  • Down the left side of the screen, click on Federal.
  • Across the top of the screen, click on Wages and Income.
  • Scroll down to Self-employment.  Click Show more.
  • Click on Start / Edit/Add to the right of Self-employment income and expenses.
  • At the screen Your self-employed work summary, click Edit.
  • At the screen Here's your info, scroll down and click Edit to the right of Assets.
  • At the screen Business Asset Summary, click Add an Asset.

By entering the purchase date of the stolen computer, TurboTax will compute the year 2022 depreciation for the asset.

 

The full cost of the new computer may be claimed by using the section 179 deduction or special or bonus depreciation if the assets qualify for that treatment.

 

@Daisyduke4 

 

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