I'm using Turbotax Self-Employed (online) this year and I'm entering the depreciation of a rental property. This was previously calculated in a depreciation schedule provided by an accountant in previous tax year. The Turbotax numbers are not matching up with previous depreciation expense taken.
Turbo tax calculates a depreciation expense of $2,821; which is incorrect. This is based on calculated cost basis as follows: purchase price $89,000 - cost of land $36,350 = cost basis $52,650). Other info: Date it was used as a rental business (02/01/2008), and how much was depreciated previously ($5,743).
Using an online depreciation calculator (as well as verifying my previous year's depreciation expense), the depreciation expense should be $1,915. Data entered was cost basis of $52,650, recovery period of 27.5 yrs, starting month of 02/01/2008.
Why are the numbers not matching up?
Without being able to review your return and see what's actually happening, it's difficult to say. One suggestion would be to switch to the Desktop version of TurboTax. It has forms mode that will let you see not only forms and schedules, but worksheets like the asset worksheet that shows all the input for depreciation calculations. It's easy to switch to Desktop, and you won't lose any of your data that you've entered in to Online. For more information see: How do I switch from TurboTax Online to the TurboTax software?
Another suggestion would be use the TurboTax Live feature, and have an expert go through the return with you - live. For more information go to: TurboTax Live
@subrebost2020 wrote:Date it was used as a rental business (02/01/2008), and how much was depreciated previously ($5,743).
Was this rented continuously, at 100%? If so, your "previous depreciation" is wrong. That is what is changing the numbers.
It was rented continuously (at 100%) since that 02/01/2008 date. By previous depreciation, I just relied on the previous years depreciation schedule. Would I have to go through each tax return since 2008 to determine the 'previous depreciation'? An online depreciation calculator I found doesn't rely on 'previous depreciation' like TurboTax is asking. It just wants the cost basis ($52,650), recovery period (27.5 yrs) and the starting month/year of rental service (02/2008). Thank you. Perhaps I should switch to the Desktop version so I can see the schedules/tables.
If you leave the "prior depreciation" BLANK, the program will assume you properly took the correct amount of prior depreciation, and it should calculate things correctly.
Did you go to that tax professional for only 3 years? If so, that is probably why it is only showing 3 years of depreciation. However, you may want to double check your tax returns that you actually DID take depreciation all of those years.