Investors & landlords
Here is your statement from above: Placed in service 10/27/2012
- 2) TurboTax automatically generated previous years total depreciation $73,571. -- Should be $67,015
- 3) TurboTax generated 2024 depreciation $6,564 if previous years total depr. is $73,571. Depreciation is correct for 2024.
If we take the building less the land the amount should be $180,544 ($315,881 minus $135,337). This will create $6,566 depreciation for 2024 or fractions make it $6,564.
This is the amount you have been taking each year for years 2-12 (give or take a couple of dollars. The first year would always be less because it was placed in service during the tax year.
The amount each year was not calculated at $11,000 - see the formula below. Each year it was roughly the same amount with the exception of year one.
Using the 27.5 year chart here is the total prior depreciation for this rental building.
- Year 1: $180,544 x 0.758% =$1,369
- Year 2-11: $180,544 x 36.36% = $65,646
- Total depreciation before 2024 = $$67,015
- Year 12: See above for 2024.
See the chart below for verification. Correct your prior depreciation and all else is correctly calculated.
