ThomasM125
Expert Alumni

Business & farm

If you provide services, such as maid services and food, then the rental activity is considered a business as opposed to a rental activity, so that is what is prompting the schedule C to be prepared. Also, the short period of rental would be a factor.

 

You can't simply adjust depreciation in the current year to account for errors in previous years without doing a complicated change in accounting method adjustment. You can go back to previous years and amend those returns to reflect the correct depreciation however.

 

For 2019, you should enter the cost of the property when you set up the asset worksheet, and calculate the prior years accumulated depreciation by taking the cost basis and dividing it by 39 years to get the yearly depreciation amount, and use that to calculate what the previous years depreciation should have been. 

 

TurboTax may also calculate that amount for you, based on your answers to the questions in the program.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post