Question

Turbo Tax update I received today

Forum|Forum|4 years ago
April 7, 2022
1 reply
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The update changed the way the sale of rental property (Business asset) is entered as well as the sale of that same property that I lived in previous to the property becoming a rental.

The issues with the update: 1. It populated the "date bought or acquired the business rental" that I had previously entered before the update and assigned as the date I purchased the home as a personal residence (The new system after the update does not allow me to change this date.) 2. It did this same thing with the cost basis of the home as a personal residence using the information from before the update (And I'm not able to change this). 3. The new update does not allow a checkbox to choose that the rental property was never depreciated. You must choose the rental property was depreciated under the business section. (Which it wasn't).

**Note: Wiped out the business rental property sale and started over from scratch and the pre-populated information mentioned above (From before the update) still appears and can't be changed.

Carl11_2

Employee

1. It populated the "date bought or acquired the business rental" that I had previously entered before the update and assigned as the date I purchased the home as a personal residence (The new system after the update does not allow me to change this date.)

So you're saying it's the date you originally purhchased the home? It's supposed to be the date you originally purchased/acquired the property, even if that was years or decades before you made it a rental.

2. It did this same thing with the cost basis of the home as a personal residence using the information from before the update (And I'm not able to change this).

So you're saying it has as a cost basis your original purchase price? That's what it's supposed to be, unless the FMV of the property was LESS than what you paid for it on the date you converted it to a rental. Are you saying the property was worth less on the date of conversion maybe?

3. The new update does not allow a checkbox to choose that the rental property was never depreciated. You must choose the rental property was depreciated under the business section. (Which it wasn't).

In my 20 years of using TTX, I've never seen such a checkbox. Depreciation isn't a choice. So there would be no need for such a checkbox. If you didn't depreciate the property, then in the tax year you sell the property you are still required to recapture and pay tax on the depreciation you should have taken.

There are a few out there who have be depreciating there property and they don't even know it. That's because what's listed in the assets/depreciation section doesn't "bother you" with details once the asset has been set up in the initial year it was placed in service.

Then there are those who, for whatever unknown reason, never had the property listed in the assets/depreciation and they 'really' didn't depreciate it for years, only to realize it in the tax year they sold it.

Y

yre22Author

1. Before the TurboTax update I received today the question about about purchase/acquired the property in the business section had me enter in the date the property became a rental (This is a property I lived in and purchased many years before it became a rental. TurboTax also asked to enter in the rental property market value at the time it became a rental (This would be the cost of the property asset when it became a rental property. AFTER TURBOTAX UPDATE I'm asked to enter the date when the property was first purchased and the cost at that time in the business section. Then apply a percentage of time the property was used for personal use the percentage for the cost. All that is fine. The problem is this: There is a glitch in the TurboTax update and for some reason, when I get to the personal section regarding the sale of the property it is assigning the date and adjusted cost basis from what I had entered in before the TurboTax update for the business section (See above). It is pre populated and can't be changed.

2. I'm saying TurboTax is pulling the cost basis of when the property became a rental property (Something I had entered in the business section prior to the TurboTax update) and now applying that same cost basis in the personal sale of the property Turbo tax is not allowing me to change this and it is pre populated **Similar situation as issue #1.

3. Isn't it a choice to depreciate a rental property or not. I did not and TurboTax is requiring me to say I did which is something I didn't do.

Y

yre22Author

The only solution I can think of is to buy TurboTax again and start the taxes over. I've tried deleting the property information and starting that part over; however, TurboTax continues to recall some of the data I inputed before the TurboTax update. If I'm not explaining this clearly please ask or any suggestions would be appreciated?