Thx Dave - i will try by creating a new return. Having said that I have also come across additional explanation that may indicate the treatment by turbotax may actually be correct.
1 40 years for property placed in service before January 1, 2018. Note. The ADS recovery period for residential rental property placed in service before January 1, 2018, is 30 years if the property is held by an electing real property trade or business (as defined in section 163(j)(7)(B)) and section 168(g)(1)(A), (B), (C), (D), or (E) did not apply to the property before January 1, 2018. |
Above is from:
https://www.irs.gov/publications/p946
Electing real property trade or business
Under Sec. 163(j)(7)(B), an electing real property trade or business is (1) a trade or business that is a real property trade or business, as described in Sec. 469(c)(7)(C) and Prop. Regs. Sec. 1.469-9(b)(2), or real property trades or businesses conducted by real estate investment trusts, as described in Prop. Regs. Sec. 1.163(j)-9(g), that (2) makes the election to be a real property trade or business under Sec. 167(j)(7)(B) and Prop. Regs. Sec. 1.163(j)-9.
A trade or business under Sec. 469(c)(7)(C) encompasses "any real property development, redevelopment, construction, reconstruction, acquisition, conversion, rental, operation, management, leasing, or brokerage trade or business." Prop. Regs. Sec. 1.469-9(b)(2) defines "real property" to include land, buildings, and other inherently permanent structures that are permanently affixed to land, or any interest in real property (such as a leasehold). However, assets that serve an "active function" are excluded, even if permanently affixed to land (e.g., elevators, escalators, and HVAC systems). "Real property operation" is defined as day-to-day activities by a direct or indirect owner of the real property relating to maintenance and occupancy that affect the availability and functionality of the property used, or held out for use, by customers paying primarily for the use of the property. Providing significant personal services in connection with real property, where the use of the real property is incidental, is not a qualified activity. "Real property management" is defined as the handling, by a professional manager, of the day-to-day operations of a trade or business relating to the maintenance and occupancy of real property that affect the availability and functionality of the property used, or held out for use, to customers paying primarily for the use of the property.
Above from:
https://www.thetaxadviser.com/issues/2019/may/sec-163j-real-estate-infrastructure-businesses.html
So if this is accurate maybe TT is correct. Anyone have thoughts on this?
