I am using TurboTax Home and Business 2024. I compared Federal Tax Due before and after I input the info of a rental property. I found that the tax due = (net income of the property + depreciation) * tax rate. How could it happen? The total tax due should be net income * tax rate, right? I double checked the depreciation data. Looks like there was nothing wrong when I input data from the previous year.
Can you please shed some light on what's going on here? Thanks very much!
