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How to retire or dispose depreciable assets without a gain or loss

by Intuit Updated 2 years ago

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
  1. Click the Details button on the desired asset.
  2. On the left-side menu, select General Disposition Information.
  3. 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.

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