Schedule C line 13

Forum|Forum|1 year ago
March 18, 2025
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Last year, H&R block calculate my 7 year depreciation at 635. This year, I entered 635 on the 176 question but then turbo tax doubled this amount when expenses were calculated and I don't understand why. It should be 635 a year for the 7 year period right?

KeshaH

If the asset was placed in service in 2023, the depreciation increasing significantly makes sense.

In the year that assets are placed in service, you can only take a half year's worth of depreciation - it doesn't matter when your asset was actually placed in service that year. This means the depreciation in year 1 will always be low compared to the next year when you can take a full year of depreciation.

After the second year, your annual depreciation will‌ decrease each year. Tax depreciation is "front loaded" - you get bigger deductions on the front end and smaller deductions the older the asset is.