How can I correct the value Turbotax has computed the depreciation for my rental property (it should be cost basis divided by 27.5 but is not)

Forum|Forum|3 years ago
March 24, 2023
1 reply
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basis is $449k, usage % is 98.7, 27.5 year SL depreciation should be $16,126 but turbotax says $12,310

TurboTax Premier Online

Best answer by Anonymous_

@tomgoldberg wrote:
Any further thoughts?

Yes. If you manually adjust the amount of accumulated (prior) depreciation that is calculated by TurboTax, the program will adjust the current year deduction.

Carl11_2

Employee

it's not that simple, and the math does not work that way. See IRS Publication 946 at https://www.irs.gov/pub/irs-pdf/p946.pdf.

For residential rental real estate use the MACRS worksheet on page 36. For line 6 of that worksheet, Table A-6 on page 71 is used.

If you've entered everything correctly in the program, you'll most likely find the depreciation to be spot on correct.

Carl11_2

Employee

Another thing.

usage % is 98.7

How do you get 98.7%? If there was no personal use of the property *AFTER* you converted it to a rental, then it's 100% business use. Vacant days between renters "DO NOT" count as personal use days, unless you actually lived in the property as your primary residence, 2nd home, vacation home, or any other "personal pleasure" type of use. Living in the property for the primary purpose of preparing it for the next renter is not personal use.

tomgoldbergAuthor

Turbotax calculated that percentage based on the data I input that it rented for 80 nights and I stayed in it one night (short term rental ski condo).

Is this not correct?