Is there a way to manually enter the prior year depreciation figures so that TurboTax does not characterize them as overrides? Alternatively, is there a way to manipulate the tax software so that it updates the data correctly?
Yes. First, work through that specific asset so that you can write down and label the dates and numbers it has.
Once you've done that, completely delete that specific asset from the assets/depreciation section.
Next, back in the assets summary page click "Add an Asset" and add the asset back in. MARCRS classification will be Residential Rental Real Estate. When you enter the in-service date, the program will automatically "assume" the prior depreciation taken. Then when you finish entering that asset, on the last screen select to see the details. Those details will include the total amount of prior depreciation taken.
If things seem "a little off" you can click the back button to go back and adjust the prior year depreciation taken as necessary.
Please let me know how that works out for you. I'm curious, as your situation does occur sometimes. But it's very rare.
