Yes, TurboTax will calculate and report depreciation expense each year on all assets that you have added to your rental property. Check your prior year return to see if you have a Depreciation Report. Or look on Schedule E Line 18 to see if you claimed depreciation expense.
If not, you can add your assets this year. After you provide the basic information, TurboTax will give you an estimate of the total depreciation you should have taken since you first placed the asset into service. Accept this value and continue to save your work. Current year depreciation expense will be reported on Schedule E for this property.
You will also need to file an application to change the accounting method for these assets (Form 3115). Because Form 3115 is not supported by TurboTax Online in the interview, you may need to switch TurboTax Desktop, where the form is available in Forms Mode. This is a complex and tedious process, and you may consider upgrading to TurboTax Live. This online service provides step-by-step guidance from a tax expert whenever you need assistance, either over the phone or by screensharing.
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