I am using TurboTax premium desktop 2024 version. I am entering the sale of rental property and dealing with the depreciation section. When I get to the asset entry worksheet line 10 it wants me to enter prior depreciation.
I have read in the help section that the IRS assumes that I have taken advantage of all the depreciation that I am
entitled to. In this case I have owned the property greater than 27.5 years so IRS would assume that the property
is fully depreciated. If that is the case then whatever prior depreciation I took would be irrelevant, correct? Furthermore that depreciation will be recaptured. The problem is that if I enter a value for prior depreciation TT takes that amount and uses it as recapture it increases my overall taxes. So my question is which depreciation is it? The full amount that the IRS says or the amount I put into that line 10. or is TT adding both ammounts together?
I am using 2024 turbotax with an assumption of sale of the property to make sure I understand how TT handles this.
