Rental Property Depreciation

Forum|Forum|1 year ago
April 13, 2024
2 replies
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I have a rental house that is depreciated since 01/01/2005, date in service. Using the SL method over 27.5 yr life, it has been depreciated $2,278 each year. Why does the Turbo Tax Premier for Rental Propery only allow a lower depreciation than what has been used in the past?

LeticiaF1

If you used the house for personal use during the year or if when you entered the information for the house, you entered that it was not rented all year, these could affect the depreciation. The depreciation would just calculated for the time of the year that it was used for business. To get back to your rental property entries:

Open or continue your return
In the Search bar in the upper right of your screen
Search for rentals and select the Jump to link at the top of the search results
Answer Yes to the question Did you have any income from rentals or royalties?
On the next screen, Let's see if you're a real estate professional, select any options that apply to you.
On the screen What are you here to report?, select Rental property and Continue

Review your entries for the time the rental was available for rent.

wmad1975

My question is, what happens to deduction of depreciation on rental property after 27.5 years.

Do we continue or are we supposed to annotate this on the Turbo Tax return. Please assist with process. Thank you

LeticiaF1

Once you finish depreciating the rental property, there's no more depreciation deduction left to take. The exception is, if you made any capital improvements, those are usually depreciated as a separate asset. TurboTax will automatically figure this out for you.