I am finishing up my 2024 taxes using TurboTax Desktop. For my residential rental property TT is using AMT depreciation deduction on my schedule E instead of regular depreciation. The MACRS uses the same percentage 3.636 for years 2 - 9 so my depreciation should be the exact same dollar amount for years 2-9. Taxes were done by a CPA for every year up until 2023 and 2024 is year 6. On my returns year 2 through 4, the regular depreciation was used and was the same value every year. In 2023, year 5, TT started doing the AMT depreciation but I didn't catch it. The AMT depreciation is higher than the regular depreciation. Mathematically the AMT depreciation will reach the depreciable basis prior to 27.5 years. TT is calculating the regular depreciation correctly so all the data was entered the right way. How can I fix this so the regular depreciation amount is used on my Schedule E?
Maybe I should mention that I do not owe AMT. I read IRS publication 527 which basically describes using the MACRS tax tables. If I go into an Asset Worksheet, line 43 is a yes no question that asks to use IRTS tables for MACRS property. Turbo tax has this checked No for my rental properties. Why? It should be a Yes. If I change it to a yes, the AMT section removes the adjustment and shows AMT depreciation to match regular depreciation. However, the actual Schedule E still shows the AMT depreciation. Maybe I need to restart things to let the math work all through the system?
