Question

How can I correct the Depreciable cost basis table ,which shows Building cost basis of $0 and Land cost basis of $464,158 when Land cost=$78,000; Purchase price=$460,000!

Forum|Forum|3 years ago
January 31, 2023
3 replies
0 views

Land cost and purchase price were entered correctly, yet the Depreciable Cost Basis table shows obviously incorrect calculations and doesn't allow editing.

TurboTax Premier Online

PatriciaV

Employee

Please confirm under what topic in TurboTax you have entered this sales information. Including screenshots of the entry pages would be helpful as well.

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S

sumitsircarAuthor

This reply isn't allowing me to copy and paste portions of the TurboTax return using the Snip feature, so I had to resort to Microsoft Word.

Here's the TurboTax section:

OK, we’ll get some details to calculate the cost of HUTTO HOUSE

Here's where I entered the purchase price of the house ($460,000) data was removed:

Tell us more about your purchase of HUTTO HOUSE

This info is commonly found in your closing documents, such as a HUD-1 settlement statement. Learn more

The first step to determining your cost basis is getting your original purchase price.

Purchase date

Example: Section B, Box I on a HUD-1.

Available date

The day this property was ready and available to use as a rental.

Original purchase price

Example: Section J, Box 101 on a HUD-1. This value includes land.

Here's where I entered the land value 0f $78,000:

Enter your property tax info

This info can be found on your property tax bill. Learn more

We'll use the land and improvement values to calculate your final cost basis.

Land value

Improvement value

Includes buildings, structures, fences, decks, etc.

And this is what TurboTax calculated (COMPLETELY WRONG) ! Can't edit this.

OK, we've calculated your depreciable cost basis

Even though your land has a cost basis, it can't be depreciated.

Cost basisDepreciable basis

Building	$0	$0
Land	$464,158	n/a
Total	$464,158	$0

D

DianeW777

I have not had that experience in TurboTax Online. In your situation, it might be best if you first clear your cache and cookies. It handles many issues that seem nonsensical on a regular basis.

Close your TurboTax return first.

Watch to be sure you are selecting 'all time' as example. Do not use selections like 'last hour' for those browsers that give you options.

How to clear your cache

Once this is complete open your return and select to enter your income.

Search (upper right) type rentals > Jump to... link
Begin your review and if necessary enter the cost basis again for both building and land.

Please update here if you need further assistance.

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Carl11_2

Employee

Maybe this will help? One issue I've seen a few times, is folks not entering the correct information to begin with, because of a lack of clarity on the screen, or they don't read the small print. When entering the data in the screen that asks for COST and COST OF LAND, using your numbers you'd enter:

COST: $460,000 (this is your total purchase price)

COST OF LAND: $78,000 (this is how much of the COST that is allocated to the land)

Once those figures are entered, the program (not you) will do the math to determine the structure value of $382,000 to be depreciated over the next 27.5 years.

Take note that the final figure to be depreciated may not be exact, because the program will also take into account those closing costs/sales expenses that get added to the cost basis.

V

Vicky022

Facing the same issue, building cost is 0. Double checked all the input. How was this issue solved?