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Investors & landlords
You should amend your 2015 tax return to correct the depreciation.
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Some tax bills report a fairly accurate amount for the valuation, but others don't. Does $63,100 seem about right? You may try Zillow.com to get another perspective. For the rest of this comment, I'm going to assume that $63,100 is accurate.
Is $63,100 less than your Adjusted Cost Basis? Adjusted Cost Basis is usually (1) purchase price, (2) plus cost of improvements, (3) minus any depreciation taken before it was a rental, such as for a Home Office. If $63,100 was less than the Adjusted Cost Basis, you are correct and $63,100 is what you should use.
You are right that the Basis for Depreciation would be $60,500, BUT you should enter the total amount ($63,100) and then the amount for land ($2,600). Then TurboTax does the math.
If you amend your 2015 return to correct the depreciation AND you have already transferred your 2015 tax return information into your 2016 tax return, make sure the "prior depreciation" is what you claimed for depreciation on the 2015 tax return.
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed"...>
Some tax bills report a fairly accurate amount for the valuation, but others don't. Does $63,100 seem about right? You may try Zillow.com to get another perspective. For the rest of this comment, I'm going to assume that $63,100 is accurate.
Is $63,100 less than your Adjusted Cost Basis? Adjusted Cost Basis is usually (1) purchase price, (2) plus cost of improvements, (3) minus any depreciation taken before it was a rental, such as for a Home Office. If $63,100 was less than the Adjusted Cost Basis, you are correct and $63,100 is what you should use.
You are right that the Basis for Depreciation would be $60,500, BUT you should enter the total amount ($63,100) and then the amount for land ($2,600). Then TurboTax does the math.
If you amend your 2015 return to correct the depreciation AND you have already transferred your 2015 tax return information into your 2016 tax return, make sure the "prior depreciation" is what you claimed for depreciation on the 2015 tax return.
May 31, 2019
7:03 PM