TurboTax did not calculate any depreciation on a rental

Forum|Forum|4 years ago
March 17, 2022
3 replies
0 views

My rental home has the following details
House 88,337
Land 60,000
Placed in service 08/26/2011

100% business use

SL MM 27.5 yrs depreciation schedule

Accumulated depreciation of $30,114

It calculates $0 depreciation expense for 2021

That doesn't sound right. Is it?

Best answer by Critter-3

Did you enter in any personal use days ? If you never used the home personally at any time once it became a rental property then personal use days would be zero. If you entered any personal use days then the vacation home rules come into play. Save the PDF of the return with the worksheets to see if the depreciation was calculated on the depreciation worksheet correctly.

Critter-3Answer

FloridaJoAuthor

Thanks for your answer,

I did not use it for personal use.

It was 100% a rental and rented out 100%.

I will print out and see. thanks again

TaxMex

I have the same problem. After completing the Asset section, TT notified $4k in depreciation, however, total form shows $0. Printing out shows $0 as depreciation. Please help.

ThomasM125

It may be that your personal use of the property is more than the greater of 14 days or 10% of the days it is rented at fair market value. If so, the rental is considered a residence and when that happens you can't deduct expenses that are more than the net rental income. So, if the rental is reporting a loss, depreciation can become non-deductible to the extent of the loss. You need to go back through your rental entries and make sure you entered the correct number of personal use days and days rented at fair market value if you think your personal use was not more than the greater of 14 days or 10% of the days the property was rented. @TaxMex

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

TaxMex

Thank you. Your response makes sense as my personal use was >10% for the year (it was 49%). Does this rule apply to HOA fees and home insurance as well? After entering the amounts for these in expense in the respective sections, TT online shows 0 and ‘Not Started’. So, instead, I forced the entries in Miscellaneous expenses section.

lilli2

Same! And I just discovered it this year when Turbotax failed to do the same thing again. And I believe the rule is that it's necessary to recapture the allowable depreciation even if you didn't claim it the first time around. So now I have to refile TWO years worth of returns. And I paid extra for the live advisors in '21!

Carl11_2

Employee

This thread is lacking clarification of what constitutes business use percentage. The below is provided to give readers that clarification.

Rental Property Dates & Numbers That Matter.

Business Use Percentage. 100%. I'll put that in words so there's no doubt I didn't make a typo here. One Hundred Percent. After you converted this property or space to rental use, it was one hundred percent business use. What you used it for prior to the date of conversion doesn't count.

Date of Conversion - If this was your primary residence or 2^nd home before, then this date is the day AFTER you moved out, or the date you decided to lease the property – whichever is later.
In Service Date - This is the date a renter "could" have moved in. Usually, this date is the day you put the FOR RENT sign in the front yard.
Number of days Rented - the day count for this starts from the first day a renter was contracted to move in, and/or "could" have moved in. That would be your "in service" date or after if you were asked for that. Vacant periods between renters do not count for actual days rented. Please see IRS Publication927 page 17 at https://www.irs.gov/pub/irs-pdf/p527.pdf#en_US_2020_publink1000219175 Read the “Example” in the third column.
Days of Personal Use - This number will be a big fat ZERO. Read the screen. It's asking for the number of days *YOU* lived in the property AFTER you converted it to a rental. I seriously doubt (though it is possible) that you lived in the house (or space, if renting a part of your home) as your primary residence, 2nd home, or any other personal use reasons after you converted it to a rental.