Carl
Level 15

Investors & landlords

overwrote the amount the program calculated

When you do an over ride, you "automatically" can not e-file. It's an IRS thing, not TurboTax.

My guess is you did something wrong in the process of reporting the sale. For starters, depreciation is not as simple as one may think. It's not a "per day" process. It's more like a percentage process based on the convention used. Remember, all depreciation taken is recaptured when you sell the property, and you pay taxes on that recaptured depreciation. So if it takes a full year depreciation for 2019, in the sale it's going to turn right back around and recapture it for taxation.

But overall if you sold the property in Feb, it should be using the mid-month convention at either 3.636% or 3.637% of the depreciable basis. Which percentage is used depends on weather it's an odd year or even year of depreciation in the tax year you are selling. This comes straight from Table A-6 on page 74 of IRS Publication 946 at https://www.irs.gov/pub/irs-prior/p946--2017.pdf

So this confirms the program is figuring things right per the IRS rules.