Rental Property Depreciation wrong

Forum|Forum|2 years ago
February 14, 2024
1 reply
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I have used the straight line depreciation method for years using turbo tax each year. Yet for 2023 the amount of depreciation increased over $2000. I have not changed anything: no new assets, no improvements or appliances, etc. Any ideas about how or why turbo tax increased this?

TurboTax Home & Biz Windows

Mike9241

did you use H&B or any other Turbotax 1040 product in the past or did you transfer the info in from another tax app?

for most residential property the amount should be cost less land cost divided by 27.5

for commercial same steps but divided by 39

for foreign its 40

if you enter from another tax app make sure date in service and prior depreciation were entered correctly

Turbotax without taxpayer consent adjusts the depreciation over the remaining life if what it calculates as life to date depreciation it computes is nit the same as what was entered

aberry5481Author

I have only ever used turbotax buz to do my taxes & to figure the straight line (27.5 yrs) depreciation on this rental house. Past years the amount was always the same (house divided by 27.5) but as I said the amount increased over $2000 this year, no changes whatsoever to value.

I have tried reading all the IRS information and found no new changes to the 27.5 years depr. based on purchase price of the house. Also, can't find any reasoning given by turbo tax. To protect myself I purchased the tax audit offered by turbo tax so just in case of audit maybe they can find an explanation.

Thanks for your help.