I would like to use accelerated depreciation for rental property acquired in 2021. How do it in turbo tax home and business edition

Forum|Forum|3 years ago
September 17, 2022
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Critter-3

There is no such thing for rental real estate ... it is a 27.5 year property period. And the land cost must be broken out of the total cost since land it not depreciated.

Carl11_2

Employee

There is no accelerated depreciation for residential rental real estate. It's 27.5 years. See IRS Publication 946 at https://www.irs.gov/pub/irs-pdf/p946.pdf on page 27, "Required use of ADS".

Required use of ADS. You must use ADS for the follow-
ing property.
• Nonresidential real property, residential real property,
and qualified improvement property held by an elect-
ing real property trade or business (as defined in sec-
tion 163(j)(7)(B) of the Internal Revenue Code). For
more information, see Revenue Procedure 2019-8 on
page 347 of Internal Revenue Bulletin 2019-3, availa-
ble at IRS.gov/irb/2019-03_IRB#RP-2019-08, as
modified by Revenue Procedure 2021-28 on page 5 of
Internal Revenue Bulletin 2021-27, available at
IRS.gov/irb/2021-27_IRB#RP-2021-28

Anonymous_

Employee

@Carl11_2 wrote:

There is no accelerated depreciation for residential rental real estate. It's 27.5 years. See IRS Publication 946 at https://www.irs.gov/pub/irs-pdf/p946.pdf on page 27, "Required use of ADS".

27.5 years is GDS, not ADS.