Rental Property Depreciation

[kathysherman1]

Hello,

I have been using Turbo Tax for years and enjoy that transfer information regarding our two Rental Properties previous years depreciation.  Unfortunately, we had a hard drive crash and I'm not able to recover from 2018.  But I do always have back up paper copies (yeah!) so I have that information.

Specifically,  Form 4562.

I have all the Depreciation information but other than the Cost of Property and date put into service, I'm not finding where it will let me input the information for things like the improvements that I've depreciated through the years .....Floors, carpet heating system, cabinets etc.  I have the cost of those and dates.

Please help! Thank you!

Kathy

[Critter]

Each asset gets entered individually ... once you have entered the first the option to add more will be presented.  Using the prior year depreciation worksheet you should have all the information needed to reconstruct that section.

It's always a good idea to make a backup copy of your tax data file, in case your original gets lost or corrupted. Here's how:

1. From the File menu in the upper-left corner of TurboTax, choose Save As (Windows) or Save (Mac).
2. Browse to where you want to save your backup.
   • Tip: If you're saving to a portable device, save it to your computer first to prevent data corruption. Then, after completing Step 4, copy or move the backup file to your device.
3. In the File name field, enter a name that will distinguish it from the original tax file (for example, add "Backup" or "Copy" to the file name)
4. Click Save and then close TurboTax.
5. Restart TurboTax and open the backup copy to make sure it's not corrupted. If you get an error, delete the backup and repeat these steps.

If you make changes to your original tax return file, repeat these steps to ensure your original and backup copies are in-synch.

Related Information:                             

• Retrieve a Tax File from a Portable Device
• What's the difference between the tax data file and the PDF file?

AND save it as a PDF so you have access to a copy even if you don’t have the program still installed and operational :

• How do I save my return as a PDF in the TurboTax software for Windows?
• How do I save my return as a PDF in the TurboTax software for Mac?

AND protect the files :

• How can I protect the tax files on my computer?

[kathysherman1]

Thank you for your answer, but other than the original cost (net of land), date purchased, and date entered for rental, I'm not finding on where it will allow me to input the other items, carpet, heating, windows cabinets etc from the Date of Service. 

I have all of that, but I'm not finding where I can input it.

There just seems to be a single line of previous years depreciation but not individual line items.

I'm using Home and Business.

Thank you

Kathy

[AmeliesUncle]

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@kathysherman1 wrote:

Thank you for your answer, but other than the original cost (net of land), date purchased, and date entered for rental

---

It looks like you have already added the property itself as an "asset".  You now need to add each other item as another "asset".  If you go back into the "asset" section, it should let you add more assets.

As a side note, you don't enter "original cost (net of land)".  You enter the TOTAL cost (building and land combined) and then another entry will ask for the cost of land itself (the program will then calculate the "net of land").

[kathysherman1]

Update.....I have figured out where to input these individually, however, this year it is only giving me 5 year depreciation on floors, windows, cabinets, etc. where the previous years was 27.5 SL/MM?  

We these changed for this year?

[Critter]

Nope ... you choose the wrong option ... try again ... 

[Carl]

floors, windows, cabinets, etc. where the previous years was 27.5 SL/MM?

That's because you selected the wrong asset classification. All of your rental property improvements are classified as "Residential Rental Real Estate".

Also, be careful here.

On your 2019 tax return the "prior year's depreciation" will *NOT* be the same as shown on your 2018 tax return. When TTX 2019 ask you for (or asks you to confirm) the prior years depreciation already taken, it's important the correct amount is there.

To get the correct amount for a specific asset, look at the IRS Form 4562 for 2018 and add togehter the amounts in the "prior years depr" column and the "current year depr" column. That total gets entered on your 2019 tax return for prior years depreciation already taken.

For your carry over losses, you'll find those on the 2018 tax return on IRS Form 8582. If you don't have an 8582 in the 2018 package, then you don't have any carry over losses. (That would not be common.)

[kathysherman1]

Yes, that's where I've entered them.  

Example:

Master Bath

Next Question:  How would you categorize this asset?

Then I click:  Appliances, Carpet Furniture

Next Question: Describe Asset :  Master Bath

Cost: $1713

Date Purchased:  03/01/09

Next Question: Purchased New

Always Used this Asset 100% for Business

Next Question: Additional Special Depreciation first year 

No

Next Question relates to MACRS Conversion

So I'm assuming I would put 1/2 year?

Next Question:  Calculating appreciation used so far which is accurate

But I'm not showing where I can enter Straight Line 27.5?

Thanks

[kathysherman1]

Thanks, Carl.  I'll try that.  🙂

[kathysherman1]

Got it!  I was putting it under the "Appliances, Furnishings etc" instead of all under real estate!

Thank you so much for your help!

[kathysherman1]

Thank you!

[kathysherman1]

Excellent!  That's where I took the wrong turn.  All under Real Estate instead of Appliances, Furnishing etc.

Thanks for your help!

Kathy