Question

Federal vs California Depreciation Rules

Forum|Forum|3 years ago
March 27, 2023
1 reply
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My CPA-prepared return for 2021 has separate depreciation rules and amounts for my rental property related items. How can I enter different depreciation tables/ amounts for federal and state returns?

T

ThomasM125

You can only enter your assets in the federal section of TurboTax, but you can enter an adjustment for depreciation differences in the California return. You have to choose the Edit option for your rental or business on the page in the California return that says Business Summary.

On the next page you will see your Asset Summary that you can edit to make changes to the depreciation entered on your federal return if necessary.

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H

hozdemir22Author

When I go to the Asset Summary, it asks for the prior CA depreciation for the asset. I entered a number and moved on. Later I realized I entered the wrong amount and wanted to change my entry. But TurboTax will not allow me to edit the prior CA depreciation. Instead, it says "We have already made some adjustments for you." If I click "EDIT" anyway, it says "No adjustment required."

My question now is: if I want to re-enter the data, because a wrong amount was entered the first time, how can I do so - i.e. re-enter the prior CA depreciation?

Thanks,

PatriciaV

Employee

Your best option is to start the California state interview again and review all your answers.

If that doesn't allow you to edit the info you entered, you can delete your state return in TurboTax Online (as long as you haven't paid yet).

From the left menu, select State (if you don't see this menu, select the menu icon) and then select Continue on the Let's get your state taxes done right screen.
On the Status of your state returns screen select Delete to the right of your state, then answer Yes.

Go back to the State Taxes section and re-create your California return.

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