@DianeW777
Hello Diane,
Thank you for your comments.
Can you please tell me if I interpreted these statements correctly?
"One adjustment you need to make is to put in the full amount of prior depreciation when it shows that figure. This will eliminate taking excess depreciation for the one asset that is the original basis of the building traded. "
Here are the steps I performed:
- I apportioned the $158,000 of prior depreciation from the relinquished property to the 3 replacement properties.
- The Oil and Gas prior depreciation ($44,000) will not be captured in TurboTax, but saved on a worksheet with the other calculations.
- The TurboTax calculated values for prior depreciation per asset for replacement properties 2 & 3 were much less than what I manually calculated using the $158,000 number: : Ford Distro ($21,000 vs. manually calc'd $86,000), and Senior Living Center ($10,000 vs. manually calc'd $28,000).
- Consequently, the depreciation expense that I could claim from the apportioned $90,000 of "original" basis decreased down to a $0 value for both properties 2 & 3 after adding in the manually calculated prior depreciation values. In essence, the apportioned original basis became unusable - receiving no benefit at all. This seems wrong - somewhere there is an error or a misstep.
- When I ran the Federal error check, it flagged the Schedule E for the Senior Living Center stating that the prior depreciation amount cannot be any higher than $18,000. Therefore, I changed it from $28,000 to $18,000 as stated.
- FYI, every time I step through "Confirm Your Prior Depreciation" page, it defaults the value back to the TurboTax calculated value.
As I mentioned above, I do believe I made an error at some point in the process above, as the original basis coming from the relinquished property should still be an expense deduction for the remainder of the depreciation schedule tied to each respective replacement property.
Any insight here will be greatly appreciated!
Thanks,
Jamie
