for rental property, the depreciable amount is $147197. Turbotax is calculating depreciation deduction as $839. this doesn't seem right. Shouldn't the amount be $5352 ?

Forum|Forum|11 months ago
April 14, 2025
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DianeW777

It depends. If this is the first year placed in service the amount can be significantly less. The amount you show is for a full year of depreciation.

For example: If the property was placed in service in November, 2024 then the rate would be more like 0.455% for the first year. Each full year is either 3.636% or 3.637% depending on the year. See the chart below and in IRS Publication 946.

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mihir_3967Author

Thanks DianeW for responding to my question.

The property was rented out in August 2024.

Based on depreciable value of $147197.00 in 27.5 years basis the amount should be $5352.61.

But as property was rented for only 5 months of 2024, I was expecting the amount to be ~$2200.00 ?

Not a financial / tax expert. So please pardon my ignorance if any.

DianeW777

Not at all. The amount starting in August, 2024 would be calculated on a rate of 1.364% and should be right around $2,007. Double check your entries and make sure you selected Residential Rental Property as the asset type and that you are reporting this on Schedule E.

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