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February 21, 2021
Question

Why is the depreciation diff for "New rental proterty" vs "Rental Property"?

  • February 21, 2021
  • 1 reply
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I rented my property out in Sep 2020. When I add the rental property in TurboTax with "First year rented" and "Converted home to rental" checked, I got only $4,009 depreciation deduction for 2020 in the end, saying "This was calculated off your total depreciable amount of $1,134,136." But with $1,134,136 basis starting in September, should it not depreciate $1,134,136*0.01061 = $12,033 in the first year? TurboTax actually does give a depreciation of $12,029 if I add the property without checking "First year rented" and "Converted home to rental", same depreciable amount. What has caused the difference?

1 reply

February 21, 2021

did you enter any days as personal use days? for personal use days do not count the days you occupied it before converting to rental. most likely personal use days are 0