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Deductions & credits
is this the first year? if so, you can use the alternative depreciation system which changes the depreciable life from 27.5 to 30 years. I don't know how this is done in online versions. in desktop go to forms mode and then to the property listing. On line 47 depreciation method use the drop down to change to ALT. Whether you should do it is a different question. in the future you may want the higher depreciation deduction. about $300 per year for each $100K of real property. you can file form 3115 to change but that form may not be easy for you to do properly. and I believe your bottom line for the rental that year gets hit with the catch up in depreciation. which can have other tax consequences as well.
‎April 19, 2025
12:00 AM