Turbo Tax is not figuring my Assets depreciation correctly this year?Why?

Forum|Forum|6 years ago
February 12, 2020
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TurboTax Self Employed Online

klehnhardt

There has not been any reporting of depreciation calculation errors this year.

I cannot see your return to see where the depreciation is calculated. Without knowing the type of asset, cost, date acquired, and depreciation calculated I am unable to adequately answer your question.

robertcross2002

i am a farmer. I am trying to depreciate the painting of my barns. Program keeps coming up with zero.

ThomasM125

Normally, painting is considered a repair and maintenance item, so you could probably deduct it as an expense.

If you decide to depreciate it, however, what type of property are you selecting for it?

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Carl11_2

Employee

Why, specifically and explicitly do you believe the program is wrong? Rental asset? Business asset? Farm Asset?
Some other type of income producing asset?

Ocean Shores

For me, it was my 3 rental houses that I have owned for 10 years. It has auto-filled the depreciation every year until now. There was no notice of a change. The folks at TT haven't a clue and can't help me.

VolvoGirl

Employee

@Ocean Shores Did you Transfer from 2019? Did other things transfer over? Are you using the Desktop program or the Online version? You may have transferred from the wrong account or wrong 2019 file. Or maybe in 2019 you marked the assets as sold or final? Are you filing them on Schedule E for Rentals or Schedule C as Business?

crlong

I've been a loyal Turbo Tax customer for more than 15 years. How I regret that and wish I'd hired a professional years ago!!!!!

I had a rental property for 14 years that I sold in 2022. For years I was "under water" after the 2008 market crash but fortunately, I was able to sell the rental in 2022 for a good amount above the purchase price. Shame on me for not understanding the concept of depreciation. I'm now facing a large capital gain that could've been reduced had Turbo Tax (Premier) coached me through the depreciation calculation all these years. The only reason I hired an accountant for this year is in addition to selling the rental, I inherited some money and my husband received stock options. My accountant used to work for Turbo Tax and said errors in the software are almost always in favor of the IRS. That's why the IRS recommends Turbo Tax (unreal!).

If you have even one rental property, DO NOT USE TURBO TAX!!! What's happened to me and so many others is absolutely criminal!!!!!!!!!!!

KrisD15

Depreciation on rental property is always figured on the lower amount, what you purchased the property for (your basis) or the value when the property is put into service.

You enter that into the TurboTax program when you list the rental.

Depreciation is taken year after year, there is nothing that you can do to change that.

The Depreciation recapture is reported as Ordinary Income (not capital gain)

The profit you realized (the amount you sold it for which is over what you paid for it) is Capital gains.

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