This article will help you dispose of a depreciable asset, and stop depreciation, without recording a gain or loss. First, navigate to the depreciation screen using the instructions below for your return type.
- Individual, fiduciary, and corporate (1040, 1041, 1120):
- Deductions > Depreciation
- Partnership and S-corporate (1065, 1120S):
- Ordinary Income > Depreciation (4562)
- Exempt organization (990):
- Expenses > Depreciation
- Click the Details button on the desired asset.
- On the left-side menu, select General Disposition Information.
- Enter the Date sold, disposed, or retired [MANDATORY].
The program will automatically calculate depreciation for only the portion of the year before the asset was retired. The asset will not proforma (roll over) to next year's return.