Question

Add depreciation manually

Forum|Forum|4 years ago
April 11, 2022
3 replies
0 views

I had my taxes prepared by a CPA for tax year 2020. I bought a house (in 2020) and rented out a room in it for part of the year. My CPA calculated the amount of depreciation and filed my taxes for tax year 2020. I am filing my own taxes in 2021, and I don't see where I add the depreciation from 2020 manually. For year 2021, I did not rent out any part of the house, and I lived full-time in the house. I don't see where I enter the depreciation manually.

T

ThomasM125

You wouldn't be due any depreciation deduction in 2021 if you didn't rent a room that year. The depreciation claimed in 2020 would only be used in the year you rent the house again or sell it. So, you don't need to report the depreciation in 2021 on your tax return or TurboTax file.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

T

Tekpro007Author

Yup, I wasn't planning on any depreciation in 2021, but I understand that Turbo Tax can track the total depreciation of the asset. I was just thinking if it was possible to enter the used depreciation, so that in case I rent the home in the future, Turbo Tax would already have that info.

J

johnatmh

I am no expert, but I have a similar situation in that we have an attached apartment on the side of our house that we rent out. When we started renting it back in 2012 we had a CPA do our taxes so we would be sure to get the basis and depreciation started on the right foot. This might be overkill for what you are trying to do, but I have done my own taxes using TurboTax for many years so what I did was used the TurboTax software for 2012 (2020 for you) to recreate exactly the same outcome as the CPA did. I therefore had the foundation set for future years which worked out great and I have done the taxes ever since using TurboTax. Just a thought that you might want to try...worked well for me. Good luck.

I

InHisName

Review your 2020 taxes as filed.

Find form 4562.

Part III MACRS depreciation shows what your CPA did in 2020.

You should see one line filled out with:

C. Basis

D. Recovery period

E. Convention

F. Method.

G. Depreciation deduction (for 2020 if you rented the room for all 12 months)

That is the useful info that will be required if you ever rent the room later.

You might have to start with year 2020 turbo tax to enter the beginning. It should continue for the next 27 years to have that number ready if needed.

If it has been set up in earlier years, see line 17 MACRS deduct. for years prior to 2020.

I have a 4562 for each of my properties. The address appears right after my name at the top.

I looked in my TT but could not find how to enter a depreciation after year 1.

D

DianeW777

Do not add assets into your tax return if they are not being used for rental activity in 2021. Instead pull a copy of the depreciation worksheet or Form 4562 (since it was the first year) from your 2020 tax return and keep it with your current tax documents. Carry that document forward with your tax papers until you start to rent it again or sell the property.

It is used for personal purposes in 2021 so even adding it would create the need to remove it from service because of converting to personal use. Again it would be removed from your tax return. It is a paperwork record keeping action. If you choose you can create an excel file and keep it on hand that way.

@Tekpro007

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"