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drad
New Member

I have sole proprietor LLC and bought commercial space. I use most for my business and receive rent. Can I write off depreciation on bus. or only passive investment?

I am not sure if I just use as personal investment but then I just have a very large passive investment loss.

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DDollar
Expert Alumni

I have sole proprietor LLC and bought commercial space. I use most for my business and receive rent. Can I write off depreciation on bus. or only passive investment?

You need to set the building up as an asset in the Business Income and Expenses section of the program.  If you've already entered your Business Income and Expenses, return to that section and Update your business.

  • Scroll down to "Business Assets"  and click Start.
  • Answer Yes to "Did you buy, or do you own, and depreciable assets related to this business..."
  • Answer No to "Did you buy any items for any business,.... that cost $2,500 or less in 2016?"  (You can return to this question later if the answer is yes.
  • Answer the question "Did you make improvements to a building you used for this business in 2016"
  • Under "Describe This Asset" indicate "Real Estate Property" and enter the date purchased
  • Continue and TurboTax will guide you through setting up your Building as a depreciable asset.

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2 Replies
DDollar
Expert Alumni

I have sole proprietor LLC and bought commercial space. I use most for my business and receive rent. Can I write off depreciation on bus. or only passive investment?

You need to set the building up as an asset in the Business Income and Expenses section of the program.  If you've already entered your Business Income and Expenses, return to that section and Update your business.

  • Scroll down to "Business Assets"  and click Start.
  • Answer Yes to "Did you buy, or do you own, and depreciable assets related to this business..."
  • Answer No to "Did you buy any items for any business,.... that cost $2,500 or less in 2016?"  (You can return to this question later if the answer is yes.
  • Answer the question "Did you make improvements to a building you used for this business in 2016"
  • Under "Describe This Asset" indicate "Real Estate Property" and enter the date purchased
  • Continue and TurboTax will guide you through setting up your Building as a depreciable asset.
drad
New Member

I have sole proprietor LLC and bought commercial space. I use most for my business and receive rent. Can I write off depreciation on bus. or only passive investment?

I assume I also need to put asset under schedule E for the rental revenue correct?
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