Question

data entry for a rental

Forum|Forum|4 years ago
April 10, 2022
1 reply
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I bought a neighboring property 20+ years ago, and finally got it ready to rent. Turbo tax asked what I paid for it on one screen, what improvements I made on another screen and then askes for "the property tax values" only it doesn't say whether it wants the values listed when I bought it or current values ( which are significantly higher). On this same screen, it implies I should add to the structure value my costs for remodeling it to the tax values. Using the tax values when I purchased it $7084 Land / 51,300 structure but not adding improvements, the next screen tells me 83,700 for depreciation.

Using the tax values when I purchased it $7084 Land / 51,300 structure +32,354 improvements, the next screen tells me 87,370 for depreciation. ??

Question 1) tax values when I bought it or current?

Question 2) do I add the improvement value on "the property tax values" screen or not?

Thanks!

KrisD15

1. Tax Value when it was put into service. the day it became ready to be rented.

2. Yes add the values of the improvements

The higher depreciation is attributed to the additional value of the entire rental because of the improvements.

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O

outdoorsyhumanAuthor

Thanks for the response. So I entered current tax values 55,190 land, 66,620 structure + 32,354 improvements and it tells me that 60842 will be the depreciation number. I don't understand how the starting # for depreciation went down?