Question

Why doesn't the depreciation amount change on Schedule E for renting property for only 10 months? (compared to 12 months)

Forum|Forum|5 years ago
March 24, 2021
2 replies
0 views

Line 18 reflects the same amount $9385 regardless of whether the number of days rented is 366 or 274. shouldn't the depreciation be prorated based on number of days rented? The depreciation seemed high for only renting only 9 months, so I checked to see what the 12 month depreciation was by changing number days to 366 and the amount did not change.

TurboTax Premier Online

AmyC

Employee

The days rented screen in the property profile section does not affect depreciation. You must go into the depreciation section to change the information. It asks if you stopped using the property. Select yes and the date. Once you identify the correct time period the property was used in the depreciation section, the program will recalculate the credit.

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K

karenahAuthor

Thanks. Not intuitive. Needed to go into assets to get the right questions. But figured it out. thank you.

AmyC

Employee

Glad you got it!

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Carl11_2

Employee

Days rented: The day count starts on the first day a renter "could" have moved in. Vacant periods between renters also count as days rented, provided you did not live in the property for one single day during that vacant period as your primary residence, 2nd home, or any other type of "personal pleasure" use.

So if you had a case of where a tenant moved out on May 1 of the tax year and you did not get a new tenant in until Aug 1 of that same tax year, then your days rented is "THE WHOLE YEAR", unless you lived in the property for one single day as your primary residence, 2nd home or any other type of "personal pleasure" use during that period of vacancy between tenants.

Days of Personal Use: The number of days you lived in the property as your primary residence, 2nd home or any other type of "personal pleasure" use WHILE THE PROPERTY WAS CLASSIFIED AS A RENTAL. What you did with the property "before" it was converted to a rental *does* *not* *count* for days of personal use.

Percentage of business use: The percentage of time the property was used in the business (which includes vacant periods between renters) starting from the date the property was converted to a rental. The time before it was converted to a rental *does* *not* *count* for this. So if your days of personal use is zero, then your percentage of business use is 100% (ONE HUNDRED PERCENT)

Days rented has no effect on depreciation

Days of personal use and percentage of business use *DOES* have an effect on depreciation.