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Author: brucedoe Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120826  
Subject: Depreciation Quations Date: 3/14/2004 4:54 PM
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TurboTax keeps saying that I am using the wrong number of years to depreciate certain items and I MUST correct it! My understanding is that if I started out on one depreciation schedule, I have to stick with it and cannot change things in mid-stream, so to speak. Isn't that correct?

One such item was a dock on a rental cottage on a lake. A tax advisor I was using at the time chose 7 yrs for depreciation which seemed a reasonable time to me as docks certainly do not last forever. Furthermore, the 7 years passed some years ago so a 0 is entered for the new depreciation payment and TurboTax still is telling me that I incorrectly chose a depreciation time and MUST change it. I finally figured out how to delete it. Since it has been fully depreciated for some years, do I need to keep track of the total amount that was depreciated to add it back if we should sell the property (Fortunately, we have no plans to do so.)?

I'm so bothered by depreciation that for years I hired a professional to do our returns, but finally I decided all I had to do was continue on his schedules so I started doing our taxes myself. On the few new items, TurboTax tells me the years to use, which is fine by me. I must say that IRS has never questioned our returns based on depreciation.

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