Updating question to note fiscal year:
Starting my 2025 LLC tax preparation and TurboTax Business is mis-calculating my rental's deprecations (unless someone can correct me here):
Asset Information:
Description: House
Purchase Date: 8/1/24
First-year expense decution: zero
Original amount to be depreciated when placed in service (excluding land): $705,930
Business use: 100%
Depreciation method: SL/MM
Fiscal year: ends 11/30
TurboTax calculation: 2025 deduction of $26,650, which is within a few dollars of depreciating over 26.5 years ($705,930 / 26.5). TurboTax is projecting the same amount for 2026.
2024 taxes had the same cost basis and depreciation method ($7,487 for 3.5 months: mid Aug-Nov). I have been using straight-line depreciation for the same amount coming up with $25,670 ($705,930 / 27.5) for 2025. Am I off here or how do I correct/override?
A better way of calc'ing the full year 2025 depreciation gets me to the same answer: ($705,930 - $7,487) / (27.5 * 12 - 3.5) * 12 = $25,670
