The cost of the house, net of land, is 117,267, placed in service May 2016. Using GDS and 27.5 year depreciation the tables show to use 2.273% .
This would equate to $2665.
Turbo tax calculated $1786. They added to the equation the cost of the house to be 67% of the total value.
That would be a double whammy - the tables show the reduction by having the year 1 table. There shouldn't be two reductions.
As shown in Pub 547 pg 11, I believe this confirms my statements above;
Example. You purchased a single family rental house for $185,000 and placed it in service on February 8. The sales contract showed that the building cost $160,000 and the land cost $25,000. Your basis for depreciation is its original cost, $160,000. This is the first year of service for your residential rental property and
you decide to use GDS which has a recovery period of 27.5 years. Using Table 2-2d, you find
that the percentage for property placed in service in February of Year 1 is 3.182%. That year's depreciation deduction is $5,091 ($160,000 x 0.03182).
Can anyone help me out please?
