Investors & landlords
You might check prior depreciation schedules on your tax returns to see if there were separate AMT depreciation amounts reported in prior years. If not, you can use the same depreciation amount for the AMT question that were reported as regular depreciation recaptured for this year.
Regarding determining the partial exclusion for the home, use Worksheet 1 that is described in the following IRS publication. Worksheet 1 makes no mention of the time it was rented but will help you determine if you are eligible for the exclusion or not. I have included a snapshot what that worksheet will look like. Use this worksheet to determine if you qualify for a partial exclusion or not. This way you will know whether or not you qualify and if you qualify, you may need to review your answers regarding the exclusion.
As far as changing the depreciation period in your property to 30 years,check the date you entered indicating the time you placed this into service. When it asks for available date, indicate a date it was available to be rented. in this case, a date after 01/01/2018. Don't confuse this with the date you purchased house. If the date that you first placed the rental in service is correct, and if it still isn't recording the 30 yr depreciation period properly, delete the rental worksheet in your list of forms and then reenter the information in your program.
To delete and using Turbo Tax Online.
- Now, click on Tax Tools in the black left menu bar at the bottom of the form
- Go to tools>delete a form
- Delete rental worksheet in the list of forms under the Schedule E listed in your return
If using software, go to the Forms mode in your return and locate the rental worksheet in the list of forms listed in the left portion of your program. Select the form and it will appear in the right hand portion of your program. Select delete form at the bottom.
Here is an example on what Worksheet 1 looks like in determining your partial exclusion for your home.
