I am doing my 2024 Business Taxes for 1 rental industrial property. I have 3 items worth $47,740 that need to be depreciated. As a test run, I filled out turbotax as if they were expenses. The net income and balance sheet were good and matched my records.
Then I removed those 3 expense items and added them to Rental Real Estate Assets so I can depreciate them. When I did this, the books were out of balance by $47,740. The only way I can make the books balance is by putting the items back in to Expenses and also leave them as a depreciation. But when I do this, the income drops $29,600 which is not right. I cannot expense and depreciate the same items at the same time.
What am I doing wrong?
