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Proseries basic Asset Entry for depreciation and special depreciation

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Level 2

Situation: I have a separate nonresidential RE  building  used solely as office. Purchased 1/2019

2019 TP added upgrades ( flooring) and in original return I added this cost to the 39 year dep of the building

I wanted to reclassify ( if i can ) the flooring from 39 to 15 yr and with that be eligible for the Spec 100% depreciation.    1.  Am i reading the new ruling correctly ?

2 if I am, on asset Entry worksheet,  What do i do for TYPE so that it allows me the extra depreciation. 

Maybe I  have it all wrong but have been trying for clarification all day. 

Thanks in advance.

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Level 11
Level 11

In Proseries you have to check the box on the federal information worksheet yes for the question on QIP, then on asset worksheet for asset type, choose J5

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Level 12

@JudyB wrote:

Purchased 1/2019

2019 TP added upgrades ( flooring) and in original return I added this cost to the 39 year dep of the building


 

Was the flooring adding BEFORE or AFTER the building was "placed in service"?

If it was BEFORE, then you correctly added that cost to the Basis for depreciation.  It is depreciated over 39 years.

If it was AFTER, then you add flooring as a SEPARATE asset, and it would seem to qualify for the 15 year "Qualified Improvement Property" which also qualifies for Bonus Depreciation.

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Level 2

Thank you. That is the route I was taking but always good for me to get another opinion

judy

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Level 11
Level 11

In Proseries you have to check the box on the federal information worksheet yes for the question on QIP, then on asset worksheet for asset type, choose J5

View solution in original post

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Level 2

Thank you very much