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Employee
April 14, 2024
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TurboTax incorrectly allocating depreciation in a 50 / 50 rental property partnership ???

  • April 14, 2024
  • 1 reply
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Using TurboTax Premium.  Rental house, sched E.  Entered my ownership share as 50% and then full amounts for all values (income, expenses, etc.).  Looking at the TTax Schedule E worksheet it properly applies the 50% to all values except mileage (as expected as this differs for each partner) and depreciation, which is carried over fully (50% not applied).  In reading the IRS rules it seems the depreciation should be split by partner according to ownership percentage (in this case, 50 / 50).  

 

Do I understand this correctly?  If so, I guess the only resolution is to manually alter the value in the TTax depreciation worksheet.  However, if I do that and then import it next year I wonder what the effect on 2024 depreciation will be?

    Best answer by RobertB4444

    You will need to alter the actual value of the property that was entered.  The system doesn't divide the depreciation - you need to enter 50% of the value of the property so that it will depreciate only your share.

     

    @rf78801 

    1 reply

    rf78801Author
    Employee
    April 14, 2024

    UPDATE:  it won't let me change the depreciation value on the worksheet or any other form where it appears.  It appears I must file with a known error.  Does anyone know how to  report a TTax bug?

    April 14, 2024

    You will need to alter the actual value of the property that was entered.  The system doesn't divide the depreciation - you need to enter 50% of the value of the property so that it will depreciate only your share.

     

    @rf78801 

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    rf78801Author
    Employee
    April 14, 2024

    That worked!  Thanks!