Here are some facts: It's outside of the US (so I believe depreciation is 1/40, instead of 1/27.5 according to TurboTax) It was purchased for $120,000 in 2013, as a residential apartment, I lived there for a few years. I started renting it on Jan 1st, 2018. It was rented for the entire 2018. I have a problem with "18 Depreciation expense or depletion" in Schedule E. Can I calculate it having information I listed above?Unfortunately I don't have property’s fair market value from the time I started renting the apartment.

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How to calculate rental property depreciation for Schedule E, that was converted from residential to rental?

Forum|Forum|7 years ago
June 3, 2019
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Here are some facts:

It's outside of the US (so I believe depreciation is 1/40, instead of 1/27.5 according to TurboTax)
It was purchased for $120,000 in 2013, as a residential apartment, I lived there for a few years.
I started renting it on Jan 1st, 2018. It was rented for the entire 2018.

I have a problem with "18 Depreciation expense or depletion" in Schedule E. Can I calculate it having information I listed above?

Unfortunately I don't have property’s fair market value from the time I started renting the apartment.

Best answer by Anita01

You don't need to calculate this yourself if you have answered the questions correctly. Make sure you enter a foreign address for the property. As you continue on through the interview, you will come to a screen asking questions about the assets, where you need to check that the assets are in a foreign country, and that all of the assets are in that foreign country. The program will select the correct depreciation rate and amount.

You will need to find a source for a Fair Market Value, especially important if the property has declined in market value. If it has increased, you could estimate the current fair market value, since the lesser of cost or FMV is used for the depreciable basis. You may find an estimate of changes in local market value over the relevant period of time on the internet.

A

Anita01Answer

Employee

You don't need to calculate this yourself if you have answered the questions correctly. Make sure you enter a foreign address for the property. As you continue on through the interview, you will come to a screen asking questions about the assets, where you need to check that the assets are in a foreign country, and that all of the assets are in that foreign country. The program will select the correct depreciation rate and amount.

You will need to find a source for a Fair Market Value, especially important if the property has declined in market value. If it has increased, you could estimate the current fair market value, since the lesser of cost or FMV is used for the depreciable basis. You may find an estimate of changes in local market value over the relevant period of time on the internet.

A

anonymous8Author

I understand that TT will select the correct depreciation rate and amount based on my answers from the interview. My question was more like: "Will TT ask me about FMV of the apartment? Will TT need FMV of the apartment? Because I don't have FMV. I didin't order one when I started renting at the beginning of 2018".