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If I have $32,400 in real estate income, $10,400 in expenses, why is TurboTax is only showing $19,000 for profit?

Forum|Forum|3 years ago
March 12, 2023
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Best answer by JulieS

The difference would be depreciation.

If you look at Schedule E, line 18, you will see a deduction for depreciation, which is based on the value of the property and when your rental use began. According to the IRS, "Depreciation is allowances for exhaustion, wear and tear (including obsolescence) of property."

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A

AnnetteB6

Please clarify what type of real estate income you have. Did you sell a property that is being reported on Schedule D for capital gains, or do you have rental income and expenses for the real estate?

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H

hwye54bAuthor

The real estate income is rent on a duplex.

J

JulieSAnswer

The difference would be depreciation.

If you look at Schedule E, line 18, you will see a deduction for depreciation, which is based on the value of the property and when your rental use began. According to the IRS, "Depreciation is allowances for exhaustion, wear and tear (including obsolescence) of property."

Click here to learn more.

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