Investors & landlords

put simply Turbotax cannot handle varying percentages of business use  

here's an example

assume date placed into service 1/1/2023 

first year businee use

100%

cost 351804

1st year depreciation

351804/27.5 = 12793

1st year you only get 11.5 months not 12 under the mid-month convention for real property

12793 *11.5/12 = 12260 (ok I agree with Turbotax calculation)

2nd year Turbotax computation when business use is 33.33%

351804*.3333333=117268

117268 less 1st year depreciation of 12260 leaves 105008

remaining life 27.5-.958333 (11.5/12) leaves 26.54167 remaining life

117268/26.54167 = 3956 2nd year deptreciation which is totally wrong but this is what TurboTax comes up with (this is what Turbotax comes up with rather than 

351804/27.5*.33333

 

 

 

there's no way to fix this in Turbotax except by overrides