Question

TT has correctly calculated the depreciation on my rental property as base / 27.5 the last two years. It is more than $1k different this yr. Is this a coding issue?

Forum|Forum|6 years ago
February 21, 2020
3 replies
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TurboTax Premier Online

Can you tell us where you see the number? Is this the total depreciation or is it definitely associated with only the building itself? Could it be additional depreciation from an addition or improvement?

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M

mes304Author

Hello - thanks for the response. The number is listed as the depreciation for the year, within the schedule E forms. It’s total depreciation, but there have been no improvements or additions of any kind. Nothing has changed from the previous two years that would cause a change in calculation. Please advise.

ColeenD3

You can try looking at the depreciation worksheet fo a possible breakdown. The percentage can vary slightly from 3.636% to 3.637%, but that would not account for this difference.

A

AmeliesUncle

Has this always been 100% rental since you started renting it?

Check that your "prior depreciation" is correct. Or in most cases, you could just leave that blank and the program will assume the proper prior depreciation (don't leave it blank if the business percentage has changed).

Carl11_2

Employee

Take a look at Table A-6 on page 70 of IRS Publication 946 at https://www.irs.gov/pub/irs-pdf/p946.pdf

Your first year deprecation is anywhere from 0.152% to 3.485%, with the exact percentaged determined by the month the property was placed in service that first year.

Years 3-9 are 3.636% assuming 100% business use for the entire 12 months of each year.

Nothing has changed from the previous two years that would cause a change in calculation.

You don't say if 2019 deprecation is $1K higher or lower than 2018. I'm going to guess it's lower. Therefore my bet is, the rental went empty in 2019 and you incorrectly entered less than 365 as number of days rented. When you have a rental property go empty between renters in a tax year, then provided there's no personal use during the vacant period between renters, the property is still considered as rented for the entire year with ZERO days of personal use. So if I'm right, you need to check that and change it to say it was rented the whole year.

M

mes304Author

Hi Carl - thank you for your reply. To clarify, the depreciation increased 26% year over year. This is the fourth full year we are depreciating. There have been no vacancies over the rental period and we started renting 1/1/16.

The base has not changed and no improvements / additions were made. I believe it is a calculation error within TT, but cannot identify how to override or fix.