Question

I put in all my expenses and rental income and historic depreciation is not deducting from total income? It was present initially but then disappeared.

Forum|Forum|5 years ago
January 7, 2021
1 reply
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Depreciation from previous years is not showing up in this years return.

TurboTax Self Employed Online

Not sure what you mean ... only the current year depreciation is deductible on the current year return. The cumulative depreciation is recorded on the depreciation worksheet for future reference when you sell the asset. Review the entire return including the worksheets to see if everything is properly reported.

You can peek at only the Federal form 1040 and the summary of the state info by going here:

1) lower- Left side of the screen...click to the left side of the "Tax Tools" text selection.
2) then select "Tools"
3) then select "View Tax Summary" from the pop-up
4) then back to the left-side and "Preview 1040"

Then hit the "Back" on the left side to get back to your tax entries.

To view your entire return using the online editions (including the state) before you file, you will need to pay for your online account.

To pay the TurboTax online account fees by credit card, without completing the 2019 return at this time, click on Tax Tools >>> Tools and then Print Center. Then click on Print, save or preview this year's return. On the next page, to pay by credit card, click Continue. On the next screen it will ask if you want Audit Defense, if you do not want this option just click on the Continue button. The next screen will ask for all your credit card information so you can pay for the account.

J

joelambert20_197Author

The online software is not pulling in the depreciation from previous years. It was initially present before I started putting in income and expenses for the rentals but when finalized, it is not deducting the depreciation.

Carl11_2

Employee

Not clear on what you 're trying to convey here.

Prior year's depreciation is never deducted from current year income. Only the current year depreciation gets deducted from current year income.

The online software is not pulling in the depreciation from previous years. It was initially present before I started putting in income and expenses for the rentals

You are contradicting yourself. There's no way possible it could be "initially present" in your 2020 return, if it did not import it successfully from your 2019 tax return.

but when finalized, it is not deducting the depreciation.

What exactly are you expecting to be deducted? Only the 2020 depreciation can be deducted from 2020 income.

What exactly are you expecting it to be deducted from? Rental property depreciation can only be deducted from the passive rental income. That's it. If the depreciation amount is more than the rental income amount, then it's not deducted from anything once the taxable rental income is reduced to zero. It just gets carried forward to the next year.

Rental income ane expenses (including depreciation) are passive. So once your rental expenses gets your taxable rental income to zero, that's it. Period. Any remaining expenses to be deducted are carried over to the next year.

But if you will print out the IRS Form 4562 that prints in landscap format and is titled "Depreciation and Amortization Report", you'll see the depreciation amount for 2020 shown under the "current Year Depr" column.