Hi Carl,
I have a follow-up on this particular portion of our exchange:
In my case, the depreciation calculated by TurboTax throughout the years was too inflated.
I doubt it, unless you entered incorrect information into the program. What makes you believe it's inflated? Convince me.
=======
I went over the taxes of my previous years and I see a depreciation discrepancy that I hope you will be able to clarify.
The way I manually computed the depreciation is as follows:
I took the cost of land and divide it by 27.5.
Let's assume cost of land is $200,000 then depreciation should be: $7272.00
The property was rented for 7yrs 6months so the accumulated depreciation should be: $7272.00 x 7.5 = $54,545.45
If the above method is correct then I must have input incorrect information that inflated the depreciation.
Regards,
