In the "Assets/Depreciation" section there was an incorrect number put in by turbo tax for the value of the house (not sure where it came from). I had to correct that as well.
Just to clarify something here.
The program (not the user) determines the value of the structure to be depreciated. If that number is wrong, then it's highly likely the user entered incorrect numbers in an earlier screen. The earlier screen I'm talking about ask for two figures:
COST: This is what you paid for the property in it's entirety.
COST OF LAND: This is that part of COST that is assigned to the value of the land.
With the above, the program (not the use) will subtract COST OF LAND from COST, and the answer to that equation is the value of the structure to be depreciated. If that value to be depreciated is not correct, then the user entered an incorrect value for one of the two aforementioned items.
Now in some cases, after entering those values the program will ask you for the cost of any property improvements. If it's an improvement classified the same under MACRS, then they get added to the value of the structure.
