Incorrect rental depreciation calculation by TT

Forum|Forum|11 months ago
April 5, 2025
2 replies
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I started renting out my property in Jan 2019, with building cost as 351804. In different years, I had different business use, sometimes 66%, sometimes 44% etc. For 2024, my business use is 33.33%. The online calculator using MACRS and SL, gives me a dep of 4,222. However, TT calculates it as 3575. Does anyone know why? My dep so far is 36673. Even last year, my dep. was incorrectly calculated by TT, but I let it be. I want to get to the bottom of it this year. Thanks!

Best answer by Mike9241

Sorry @Rick19744 , I don't understand. What facts changed? Are you saying your answer isn't valid? It agrees with my calculation.

with varying % of business use, you must check the box to use Use IRS tables for MACRS property. failure results in Turbotax incorrectly calculating the current year depreciation

PatriciaV

Employee

Have you reviewed the Depreciation section of the Asset Worksheet for this property? This worksheet displays the depreciable basis and the depreciation convention used by TurboTax.

Note that the program computes depreciable basis by multiplying the cost or basis (Line 4) (less Land - Line 😎 by the percentage of business use (Line 6).

You can also access the Asset Life History table using the QuickZoom link on Line 15 (TurboTax Desktop only).

If you're using TurboTax Desktop, you can access this worksheet using Forms Mode.

For TurboTax Online, see How do I get a PDF of my return?

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

sviyerAuthor

Thank you for the answer. I've seen Form 4562 "Depreciation and Amortization report".

The depreciable basis is 117,256, life is 27.5, Method is SL/MM, placed in service on 1 Jan 2019. The depreciation is shown by turbotax to be 3575, which seems wrong. All the calculators (like this: https://goodcalculators.com/macrs-depreciation-calculator/) I've used show it as 4264.

Rick19744

Employee

You are correct in the depreciation amount for 2024.

I would recommend you look at the depreciation detail to make sure depreciation has been correct for all prior years as well.

Based on the IRS tables, depreciation should have been:

Initial year $4,086
Each subsequent year $4,263 including 2024
There could be $1 rounding here and there
Beginning in year 10 and thereafter, it will change by a small amount each year as the percentage is adjusted up and down every other year.

Edit: Apparently the facts changed significantly from the original question, which is why this response does not agree with subsequent replies. You can't change the facts of an original question when someone is responding. The responses then don't make sense!!

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

AmeliesUncle

TurboTax usually uses the mathematical method of depreciation, rather than using the "tables".

The order of the math is a bit questionable, but many other software brands do the same thing, so I don't know if it is actually wrong or not. It very well might be right.

If you don't like the way it is calculating it and if are using the CD/downloaded version, you can go into the "Forms" and into the "Asset Entry Wks". Scroll WAY down to the very bottom and check the box to use the "tables".