How to calculate cumulative depreciation from form 4562? I see there is prior year and current depreciation. Do I simply add that up to get the total depreciation?

Forum|Forum|5 years ago
March 25, 2021
2 replies
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Just need confirmation that the total amount of depreciation on a rental property should be obtained by adding current year depreciation and prior year depreciation from form 4562?
Thanks!

TurboTax Premier Online

Mike9241

form 4562 does not show the total depreciation taken in all the prior years, just that year. if you always used TT the depreciation history for an asset is with it and should be available in forms modes by clicking on the link for the history. The other option if you have the 4562's for all prior years and just that property add up the amounts. however, TT follows the tax laws and does not produce form 4562 in years where no assets are added.

newfoundAuthor

Sorry, but this is confusing. The form has columns literally titled current and prior depreciation! How is this not depreciation from current and accumulated depreciation from prior years? What do those columns mean if not total depreciation? The prior depreciation column is also way more than I could possibly have taken in one year so I assume it is accumulated depreciation.

Also can you give more detail on the history part, I don't understand how to find the form and accumulated depreciation in the manner you suggest. I always used TT ONLINE for my taxes. Thanks!

buschelg

prior depreciation for my rental did not update, so how do I update prior depreciation on the amortization and depreciation report?

thanks

Carl11_2

Employee

@newfound a fair warning here.

If you have anything under the heading "AMORTIZATION" in the 4562 description column, you DO NOT include the numbers of those items when figuring total depreciation. Amortized assets are deducted, permanently and forever. Those deductions are not recaptured under any circumstances.

The total total amount amortized deductions have not yet been deducted as of the closing of the sale, then you get to deduct the remaining balance in the tax year of the sale.