different property depreciation

Forum|Forum|4 years ago
February 8, 2022
2 replies
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I had my tax return done by my accountant last year and I am doing it myself for the first time this year with Turbotax.

After input all required information, my property depreciation is different from the record from my last year tax return. I guessed the different is year to fully depreciate while Turbotax is 27.5 years, my accountant used 40 years so the number from Turbotax is $5,174 vs $2,385 from last year record.

How do I fix this? There is no where to adjust the "year to fully depreciate" in Turbotax.

Best answer by Critter-3

I input all the information but still could not get form 4562. This form 4562 was included in my tax return done by my accountant every year including last year.

The 4562 is only printed/generated if required. So long as their are no changes from the prior year, it's not required. Things that will generate it are adding an asset, removing an asset, and selling or otherwise disposing of an asset.

If the 4562 is not required then you will only get the 4562 worksheet for depreciation.

Mike9241

tell us is it US or foreign property and the year placed into service?

over the last 80 years, there have been numerous changes in depreciation lives and methods. for example, residential real property acquired and placed in service before 3/16/1984 could be depreciated over 15 years now for US property it's 27.5 years straight-line with mid-month convention .however, nothing in the laws allowed you to change from the method used in the year acquired to what new law allows. at some points, there were even different lives and methods for regular tax purposes and AMT tax purposes.

if you want to read up on depreciation read pub 946 (2021 version not available at the time of this posting but only minor changes for listed property)

https://www.irs.gov/pub/irs-pdf/p946.pdf

jnakaAuthor

Hi, Thanks for your reply.

It is foreign property in Tokyo, Japan and that year placed into service is 2015.

mglauner

Foreign property placed in service before 2018 will be depreciated over 40 years.

Click this link for details on Depreciating Foreign Property.

SG81_Stefan

I have the same issue. A 2017 German rental property. I use the TurboTax premium online version.

My tax consultant has been depreciating it as 40y, method = AML, Conv= MM.

Turbotax shows 27.5 years, method = SL, Conv=MM. Hence I get a different depreciation amount.

I have entered it as a property with a foreign country address = Germany, in use as of 10/01/2017.

I discussed it with a live support person from TurboTax but she could not solve it.

appreciate the input! Stefan

JamesG1

When entering the rental asset in TurboTax Premium Online, you may be able to replicate the method used by the tax consultant by selecting Intangibles, Other property at the screen Describe This Asset.

Be advised that the software warns you to Only select this option if you are well versed in the concept and rules of depreciation.

At the screen Confirm Your Prior Depreciation, you may enter the Amount of Depreciation Taken in Prior Years.

@SG81_Stefan

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SG81_Stefan

James, I found it.

Under the rental property info, it is not enough to input a foreign address.

On top, one needs to say "yes" on the question "Reservation, disaster or outside US area". When doing that, the years to fully depreciate changes to 40. Thanks all, Stefan