Temporarily suspend depreciation

Forum|Forum|3 months ago
March 10, 2026
1 reply
10 views

How do I suspend depreciation for a couple years, without triggering a disposal?

ProSeries Professional

T

TaxGuyBill

Level 15

Depreciation generally isn't "suspended".

If it is temporarily idle, it keeps depreciating. If it is converted to personal use, then depreciation does not pick up where it left off - it restarts using the Adjusted Basis (or FMV, if lower) and the new placed in service date.

If you are asking how to keep the information, some people change the business use to 0.01%. I print out the Depreciation worksheet and delete the Asset Entry worksheet. But either way you do it, when it is placed in service again you need to restart things with the new placed in service date and change the Depreciable Basis to the Adjusted Basis (or new FMV, if lower).

O

Opfor77Author

Level 5

Thanks for the reply. This new client started depreciating a portion of a new roof for his home office. The home office is quite small, so he only gets $250 of depreciation per year. His expenses related to his home office is only about $500 per year, so I wanted to use the simplified method ($1,250) to help lower his income. Unfortunately, depreciating that portion of the roof, and the simplified method, can't both be used in the same year.

T

TaxGuyBill

Level 15

If you select the Simplified Method, it won't also use the depreciation, so there isn't a direct need to do anything for the depreciation.

But you are right that you probably want to keep track of the depreciation. In your circumstance, I think I would change the business percentage to 0.01% (you may need to override *or* change the classification to a Home Office "Improvement" (which allows you to change the percentage).

To prevent problems the event you ever use the Actual Expenses again, I would now also scroll WAY down to the bottom of the Asset Entry Worksheet and check the box to use the IRS "Tables" for depreciation.

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