Is there any way to modify the depreciation of a rental property in TurboTax?

Forum|Forum|4 years ago
February 23, 2022
2 replies
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In TurboTax Premier, is there any way that the depreciation of a rental property can be modified? I don't know how TurboTax calculates the depreciation, but I believe it calculates the depreciation much more than it should be. I have not found where I can enter or modify the depreciation in TurboTax Premier.

Thank you very much.

Best answer by ThomasM125

You can make changes to depreciation methods and years if you use the desktop/download TurboTax product. You do that by accessing the asset entry worksheet by using the Forms mode. You can purchase the download product and then download your tax file so you don't have to re-enter the information you have entered using the online TurboTax product.

You will see an option for that by using the Tax Tools option on your left menu bar, and then Tools and then Save your 2021 tax return to your computer.

Here is a link to where to purchase the download TurboTax products:

TurboTax download products

FangxiaL

Please clarify: How long have you been depreciating the rental property? The land portion can not be depreciated. So you need to separate out the land value from the purchase price of the property.

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Sunny2AugustAuthor

It is a multi-year rental property without land value. I just try to see if there is a way in TurboTax to modify the depreciation it calculates, which I believe is too much.

Thank you.

ThomasM125Answer

You will see an option for that by using the Tax Tools option on your left menu bar, and then Tools and then Save your 2021 tax return to your computer.

Here is a link to where to purchase the download TurboTax products:

TurboTax download products

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Carl11_2

Employee

For starters, can you clarify why you think depreciation is to high? It would also help to know what the asset is.

if you have been depreciating an asset for 2 or more years and have a valid need to change it, you can't just "change" it in year 3 or later. Under no circumstances and with no exceptions should you ever change anything dealing with depreciation in the TurboTax program. Doing so completely skews the depreciation history, which will make your "new" depreciation wrong also. Then, that's basically hanging out a sign to the IRS begging them to audit you yesterday, if not sooner. Lets not go there.

If the depreciation has been wrong for two or more consecutive years, the IRS has a specific method using IRS Form 3115-Change in Accounting Method, to fix it and make things correct.

So what tends to make you think depreciation is wrong? Let's confirm it's wrong before pressing any further. It may not be - unless you are renting out a percentage of your residence, or some other property that is less than 100% rental use.