2023 Schedule E Depreciation Calculation Error

[russell29]

The 2023 Schedule E  depreciation expense calculation appears to be incorrect from the automatic calculation within TurboTax desktop.  It's classified as residential real estate, straight line and is a 27.5 year schedule.  I can't identify why this seemingly simple calculation is not correct.  This is an asset that I have been depreciating for several years prior to using TurboTax for the return preparation.  Is there a way that I can override this and enter the figure manually?  Note: I have double checked all the entries and all looks accurate on this, except for the calculation.

Thank you!

[Mike9241]

overrides prevent e-filing and void the accuracy guarantee.  should be cost - land cost is depreciable basis divided by 27.5, if there is only a couple dollars difference don't worry about it. this can come about because the original computations used the formula vs IRS tables. 

did you enter prior accumulated depreciation?

was the correct date entered for date placed into service?

I noticed that TurboTax has (or had) a bad habit of trying to correct depreciation over the remaining depreciable life if the prior depreciation wasn't computed correctly.

[russell29]

Hi Mike,

Thank you very much for your response - it helped for sure.

Best,

Russell

[rjr2al]

I have the SAME PROBLEM with 2024 Turbo Tax Premium Online (via Free from Fidelity).  I've double checked all previous year depreciation amounts. The way I found to Override the calculations is to adjust the amount of Total Depreciation Claimed in Previous Years. That way it will match the original depreciation on the 27.5 SL/MM depreciation on the Rental House that matches previous years. This may be a Turbo Tax math error. HELP

[AmeliesUncle]

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@rjr2al wrote:

 I've double checked all previous year depreciation amounts. The way I found to Override the calculations is to adjust the amount of Total Depreciation Claimed in Previous Years. 

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Did you claim incorrect depreciation in prior years (or missed some years)?  That would explain the issue.

For the prior depreciation, you need to enter the GREATER of (a) depreciation claimed or (b) the depreciation that you SHOULD have claimed.

Most likely it is something that you are entering incorrectly, rather than a program error.  The program has lots of errors, but usually not for this circumstance.