Question

Depreciation for a rental property with different amounts in differen years via TT

Forum|Forum|4 years ago
March 1, 2022
3 replies
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When I moved overseas in 2018 I began renting out my house. The depreciation was approxiately 3,984 per year based on a 27.5 SL method for 2019 and 2020. This tax year 2021, when working on the rental income/expense in TT, I plugged in the same figures (I used the same home and land value), and the depreciation was just over 3,097 or something close. Why is there about a 1k difference this year than in the two previous years I though is should be the same with SL?

Thanks

D

DianeW777

It should be the same figure for 2021 with the information you provided. Based on your original depreciation amount I am taking an educated guess that the cost basis being depreciated on the house is approximately $109571. The rate of depreciation using the 27.5 SL is 3.636%. Double check the figures and the date placed in service.

The chart is shown below for reference.

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Critter-3

Did you enter in the prior year depreciation taken correctly ? That will make a difference.

Carl11_2

Employee

Most likely when entering figures in TTX, you entered the wrong amount for "prior years deprecation" already taken.

Take a look at the 2020 (twenty twenty) IRS form 4562 that prints in landscape format, titled "Depreciation and Amortization Report". You need to add together the amounts in the "prior year depr" column and the "current year depr" column, to get the correct amount of prior year depreciation to enter on your 2020 tax return.

A

AmeliesUncle