I have not disposed of the property. In fact, May 1, 2019 was the first use of this specific property after my parent died in late December 2018. The home is now used as a rental. I just found this question to pertain most to the challenge I am having since it has to do with adjusting the basis.
Adjusting Schedule E business depreciation. Building depreciation matches my accountant's number but the carpet depreciation does not.
Building acquired 12/20/18 with assessed value of 1,527,720; Depreciation SL MM 3.636% (MACRS Method); 27.50 (Rate) for a current year depreciation of $53,241 and 2045 (final year).
Capital Improvements
- HVAC installed 09/09/19; cost of $14,570; Depreciation SL MM 3.637% (MACRS Method); 27.50 (Rate) for a current year depreciation of $155 and 2045 (final year).
- Furnishings: Carpet installed 01/04/19; cost of $17,874; Depreciation 5YR MACRS (MACRS Method); 5.00 (Rate) for a current year depreciation of $6,256 and 2045 (final year).
Instead of getting the numbers my accountant used ($53,241, $155, and $6,256), using TurboTax I got ($53,239, $155, and $6,256 (using a Section 179 of $3352 and depreciation of $2,904).
I opened the Forms view of TurboTax Home & Business Schedule E but cannot make minor adjustments to match my accountant's number for new carpet installation. It has to do with the MACRS figures. I've tried every option to make adjustments in the "interview mode" but the only way to get total numbers closer to my accountants is to jerry-rig Section 179 but that will create a problem for next year's filing. How do I modify the Schedule E Form to match my accountant's numbers?
